Pure exchange economy: Set of multiple equilibria endowments
Pure exchange economy: Set of multiple equilibria endowments
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Giskard · External communityPost link
External question — Economics Stack Exchange
Author: Giskard
Original post: https://economics.stackexchange.com/questions/19290
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Initial endowments which can result in multiple equilibria in a pure exchange economy are explained
here
. Given a pure exchange economy, that is given the utility functions (which fulfil the usual properties) and total amounts of each good, what are some properties of the set of 'multiple equilibria endowment points'?
Is this set connected?
If yes, is it convex?
Are there additional properties, does a charaterization (a set of necessary and sufficient properties) exist?
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Jovan Jezdic · External communityPost link
External answer — Economics Stack Exchange
Author: Jovan Jezdic
Original post: https://economics.stackexchange.com/a/57662
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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The following article:
TODA, A.A. and WALSH, K.J., 2017. Edgeworth box economies with multiple equilibria. Economic Theory Bulletin, 5(1), pp. 65-80.
though not focusing on the properties of the sets of endowment points that have multiple equilibria, provides a detailed look at the properties of utility functions that give way to the possibility of multiple equilibria.
It examines CRRA, quadratic, quasi-linear, and
general additively separable preferences in great detail and could provide some guidance for answering your question.
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Quoted from Forex.com.bd-Editorial External answer — Economics Stack Exchange Author: Jovan Jezdic Source score (net votes, not local likes): 1 Original post: https://economics.stackexchange.com/a/57662 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The following article: TODA, A.A. and WALSH, K.J., 2017. Edgeworth box economies with multiple equilibria. Economic Theory Bulletin, 5(1), pp. 65-80. though not focusing on the properties of the sets of endowment points that have multiple equilibria, provides a detailed look at the properties of utility functions that give way to the possibility of multiple equilibria. It examines CRRA, quadratic, quasi-linear, and general additively separable preferences in great detail and could provide some guidance for answering your question.
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