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An Example of Nonexistence of Three-Community Equilibrium
Article first published online: 11 APR 2005
DOI: 10.1111/j.1467-9779.2005.00204.x
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How to Cite
GOMBERG, A. M. (2005), An Example of Nonexistence of Three-Community Equilibrium. Journal of Public Economic Theory, 7: 285–294. doi: 10.1111/j.1467-9779.2005.00204.x
Publication History
- Issue published online: 11 APR 2005
- Article first published online: 11 APR 2005
- Received April 2002; Accepted August 2003.
- Abstract
- References
- Cited By
Abstract
In this paper I provide an example of sorting equilibrium nonexistence in a three-community model of the type introduced in Caplin and Nalebuff (1997; Journal of Economic Theory 72, 306–342). With two communities, such an example has been shown to exist only when the dimension of the policy space is even. It turns out, however, that with three communities existence may fail regardless of whether the policy space dimension is odd or even. This suggests that the original odd/even dichotomy can, at least in part, be explained by the evenness of the number of communities.