Competitive Equilibrium in an Exchange Economy with Indivisibilities
نویسندگان
چکیده
We analyze an exchange economy in which (i) all commodities except money are indivisible, (ii) agents' preferences can be described by a reservation value for each bundle of indivisible objects, and (iii) all agents are price-takers. We obtain a necessary and sufficient condition under which market clearing prices exist. Implications for market mechanisms are discussed. Journal of Economic Literature Classification Numbers: D51, C78. 1997 Academic Press
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