Existence of an equilibrium in arrowian markets for consumption externalities

A-Tier
Journal: Journal of Economic Theory
Year: 2023
Volume: 209
Issue: C

Authors (3)

Bonnisseau, Jean-Marc (Paris School of Economics) del Mercato, Elena L. (not in RePEc) Siconolfi, Paolo (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the existence of quasi-equilibria and equilibria for pure exchange economies with consumption externalities and Arrowian markets with personalized Lindahl prices. We provide examples showing first that quasi-equilibria and equilibria of the externality economy fail to exist under assumptions guaranteeing existence for economies without externalities. We show that the externality economy has identical equilibrium allocations of an appropriately defined constant returns to scale production economy without externalities. We exploit this equivalence to map sufficient conditions for the existence of quasi-equilibria and equilibria of the production economy into sufficient conditions of the pure exchange economy with externalities, thereby unveiling suitable irreducibility conditions and survival conditions.

Technical Details

RePEc Handle
repec:eee:jetheo:v:209:y:2023:i:c:s0022053123000340
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24