English

Existence and uniqueness of Arrow-Debreu equilibria with consumptions in $\mathbf{L}^0_+$

Probability 2017-01-31 v2 General Finance Portfolio Management

Abstract

We consider an economy where agents' consumption sets are given by the cone L+0\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.

Keywords

Cite

@article{arxiv.1304.3284,
  title  = {Existence and uniqueness of Arrow-Debreu equilibria with consumptions in $\mathbf{L}^0_+$},
  author = {Dmitry Kramkov},
  journal= {arXiv preprint arXiv:1304.3284},
  year   = {2017}
}

Comments

12 pages; a few typos were corrected and additional explanations were provided; submitted