We are grateful to three anonymous referees and the editor, Faruk Gul, for very helpful comments. We also thank Eric Budish, Jeremy Bulow, Jacques Crémer, Drew Fudenberg, Jerry Green, Alvin Roth, and, especially, Scott Duke Kominers for helpful discussions. Thanks, as well, to Will Weingarten and, especially, Anthony Zhang for outstanding research assistance.
Walrasian equilibrium in large, quasilinear markets
Article first published online: 16 MAY 2013
Copyright © 2013 Eduardo M. Azevedo, E. Glen Weyl, and Alexander White
Volume 8, Issue 2, pages 281–290, May 2013
How to Cite
Azevedo, E. M., Weyl, E. G. and White, A. (2013), Walrasian equilibrium in large, quasilinear markets. Theoretical Economics, 8: 281–290. doi: 10.3982/TE1060
- Issue published online: 16 MAY 2013
- Article first published online: 16 MAY 2013
- Submitted 2011-8-28. Final version accepted 2012-4-13. Available online 2012-4-13.
- Walrasian equilibrium;
- quasilinear utility;
- indivisible goods;
- continuum economies;
- complementary preferences
In an economy with indivisible goods, a continuum of agents, and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.