TY - JOUR
T1 - The existence and computation of competitive equilibria in markets with an indivisible commodity
AU - Kaneko, Mamoru
AU - Yamamoto, Yoshitsugu
PY - 1986
Y1 - 1986
N2 - This paper considers an exchange economy called a generalized assignment market, in which sellers and buyers trade one indivisible commodity possibly with product differentiation for a perfectly divisible commodity. The existence of a competitive equilibrium in this economy is proved using Kakutani's fixed point theorem. This existence theorem is applied to a production economy in which sellers are formulated as producers with convex cost functions. Two examples of housing markets are provided and their competitive equilibria are numerically calculated.
AB - This paper considers an exchange economy called a generalized assignment market, in which sellers and buyers trade one indivisible commodity possibly with product differentiation for a perfectly divisible commodity. The existence of a competitive equilibrium in this economy is proved using Kakutani's fixed point theorem. This existence theorem is applied to a production economy in which sellers are formulated as producers with convex cost functions. Two examples of housing markets are provided and their competitive equilibria are numerically calculated.
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U2 - 10.1016/0022-0531(86)90091-8
DO - 10.1016/0022-0531(86)90091-8
M3 - Article
AN - SCOPUS:0000822443
SN - 0022-0531
VL - 38
SP - 118
EP - 136
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -