By Donald G. Saari (auth.), Prof. C. D. Aliprantis, Prof. O. Burkinshaw, Prof. N. J. Rothman (eds.)
Read Online or Download Advances in Equilibrium Theory: Proceedings of the Conference on General Equilibrium Theory Held at Indiana University-Purdue University at Indianapolis, USA, February 10–12, 1984 PDF
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Extra resources for Advances in Equilibrium Theory: Proceedings of the Conference on General Equilibrium Theory Held at Indiana University-Purdue University at Indianapolis, USA, February 10–12, 1984
More briefly it may be described as giving each player his "prospects" in playing agame. The notion of value allocation is a natural extension of the value concept to an economic setting. It provides one likely answer as to what the final distribution, or allocation, of commodities will be when economic agents gather to trade. In the simplest model of exchange under consideration, each economic agent is completely described by an initial endowment of commodities and a utility function. ) To convert such an economy into agame, one begins by Lecture Notes in Economics and Malhematical Systems.
Invoking the benefit principle, some economists have argued against * Research was supported in part by grants from NSF to Yale University. Lccture Note. in Ecollomic. and Mathcmatical Systems. Vol. 244 Advances in Equilibrium Theory Editcd by C. D. Alipr'Jntis. O. nd N. J. Rothman o Springer-Verlag Berlin Heidelberg 1985 cross-subsidization. Other economists have argued that the government can use commodity taxes and cross-subsidization to improve social welfare. The prices which emerge from this approach are the so-called Ramsey prices.
The next three results yield sufficient conditions on the economy for [P] or [P'] to hold. The conditions for [P'] are quite strong (essentially, strict monotonicity of preferences). [VIII] Und8r [e] il :z; ie a quasiequiZibrium with respeat to proper quasiequilibrium (henae. by [VII]. [P] holde). p;lO. then it is a PROOF. Obvious •• Example 2 shows the need of condition [e] in [VIII]. [IX] Und8r [d]. [e] and [I] il p> O. :z; PROOF. xi > 0 is a quasiequiUbrium with respeat to p;l O. then for some p.