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arxiv: 1304.3284 · v2 · pith:BYTTVMDUnew · submitted 2013-04-11 · 🧮 math.PR · q-fin.GN· q-fin.PM

Existence and uniqueness of Arrow-Debreu equilibria with consumptions in L⁰_+

classification 🧮 math.PR q-fin.GNq-fin.PM
keywords existencearrow-debreuconditionsequilibriamathbfuniquenessadditiveagents
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We consider an economy where agents' consumption sets are given by the cone $\mathbf{L}^0_+$ of non-negative measurable functions and whose preferences are defined by additive utilities satisfying the Inada conditions. We extend to this setting the results in \citet{Dana:93} on the existence and uniqueness of Arrow-Debreu equilibria. In the case of existence, our conditions are necessary and sufficient.

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