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This paper develops a theory of competitive equilibrium with indivisible goods based entirely on economic conditions on demand. The key idea is to analyze complementarity and substitutability between bundles of goods, rather than merely…

Theoretical Economics · Economics 2024-12-12 Ravi Jagadeesan , Alexander Teytelboym

We propose new results for the existence and uniqueness of a general nonparametric and nonseparable competitive equilibrium with substitutes. These results ensure the invertibility of a general competitive system. The existing literature…

General Economics · Economics 2023-09-21 Liang Chen , Eugene Choo , Alfred Galichon , Simon Weber

Competitive equilibrium from equal incomes (CEEI) is a classic solution to the problem of fair and efficient allocation of goods [Foley'67, Varian'74]. Every agent receives an equal budget of artificial currency with which to purchase…

Computer Science and Game Theory · Computer Science 2018-09-26 Moshe Babaioff , Noam Nisan , Inbal Talgam-Cohen

We consider the problem of allocating indivisible goods in a way that is fair, using one of the leading market mechanisms in economics: the competitive equilibrium from equal incomes. Focusing on two major classes of valuations, namely…

Computer Science and Game Theory · Computer Science 2016-07-19 Simina Brânzei , Hadi Hosseini , Peter Bro Miltersen

We study competitive equilibrium in the canonical Fisher market model, but with indivisible goods. In this model, every agent has a budget of artificial currency with which to purchase bundles of goods. Equilibrium prices match between…

Computer Science and Game Theory · Computer Science 2019-11-25 Moshe Babaioff , Noam Nisan , Inbal Talgam-Cohen

We show that a large effective number of commodities can be a source of equilibrium stability and uniqueness: expanding substitution opportunities strengthens aggregate substitution effects. We study finite dated-commodity exchange…

Theoretical Economics · Economics 2026-05-05 Xinyang Wang

Competitive equilibrium (CE) is a fundamental concept in market economics. Its efficiency and fairness properties make it particularly appealing as a rule for fair allocation of resources among agents with possibly different entitlements.…

Computer Science and Game Theory · Computer Science 2020-10-21 Erel Segal-Halevi

In markets with budget-constrained buyers, competitive equilibria need not be efficient in the utilitarian sense, or maximise the seller's revenue. We consider a setting with multiple divisible goods. Competitive equilibrium outcomes, and…

Theoretical Economics · Economics 2025-04-09 Simon Finster , Paul W. Goldberg , Edwin Lock

We prove the existence of a competitive equilibrium in a production economy with infinitely many commodities and a measure space of agents whose preferences are price dependent. We employ a saturated measure space for the set of agents and…

Theoretical Economics · Economics 2020-02-06 Hyo Seok Jang , Sangjik Lee

We consider two sided matching markets consisting of agents with non-transferable utilities; agents from the opposite sides form matching pairs (e.g., buyers-sellers) and negotiate the terms of their math which may include a monetary…

Computer Science and Game Theory · Computer Science 2012-12-05 Saeed Alaei , Kamal Jain , Azarakhsh Malekian

We study the existence of equilibrium when agents' preferences may not beconvex. For some specific utility functions, we provide a necessary and sufficientcondition under which there exists an equilibrium. The standard approach cannot be…

Computational Finance · Quantitative Finance 2025-03-24 Cuong Le Van , Ngoc-Sang Pham

We study equilibrium in hedonic markets, when consumers and suppliers have reservation utilities, and the utility functions are separable with respect to price. There is one indivisible good, which comes in different qualities; each…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Ivar Ekeland

We study equilibria of markets with $m$ heterogeneous indivisible goods and $n$ consumers with combinatorial preferences. It is well known that a competitive equilibrium is not guaranteed to exist when valuations are not gross substitutes.…

Computer Science and Game Theory · Computer Science 2014-06-04 Shahar Dobzinski , Michal Feldman , Inbal Talgam-Cohen , Omri Weinstein

This paper establishes the existence of equilibrium in an economy with production and a continuum of consumers, each of whose incomplete and price-dependent preferences are defined on commodities they may consider deleterious, bads which…

Theoretical Economics · Economics 2025-11-04 Robert M. Anderson , Haosui Duanmu , M. Ali Khan , Metin Uyanik

In this paper, we revisit the common claim that double auctions necessarily generate competitive equilibria. We begin by observing that competitive equilibrium has some counterintuitive implications: specifically, it predicts that monotone…

Theoretical Economics · Economics 2022-09-19 Itzhak Rasooly

We study competitive equilibria in the classic Shapley-Shubik assignment model with indivisible goods and unit-demand buyers, with budget constraints: buyers can specify a maximum price they are willing to pay for each item, beyond which…

Computer Science and Game Theory · Computer Science 2010-04-19 Ning Chen , Xiaotie Deng , Arpita Ghosh

In this model study of the commodity market, we present some evidence of competition of commodities for the status of money in the regime of parameters, where emergence of money is possible. The competition reveals itself as a rivalry of a…

Statistical Finance · Quantitative Finance 2015-06-09 Robert Gębarowski , Stanisław Drożdż , Andrzej Z. Górski , Paweł Oświęcimka

Network effects are the added value derived solely from the popularity of a product in an economic market. Using agent-based models inspired by statistical physics, we propose a minimal theory of a competitive market for (nearly)…

Statistical Mechanics · Physics 2023-05-31 Andrew Lucas

We obtain an exact necessary and sufficient condition for the existence and uniqueness of equilibrium asset prices in infinite horizon, discrete-time, arbitrage free environments. Through several applications we show how the condition…

General Finance · Quantitative Finance 2021-03-01 Jaroslav Borovicka , John Stachurski

We present a constructive proof of the existence of an equilibrium in a competitive economy with sequentially locally non-constant excess demand functions. And we will show that the existence of such an equilibrium implies Sperner's lemma.…

Logic · Mathematics 2018-09-13 Yasuhito Tanaka
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