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We study economies where all commodities are indivisible at the individual level, but per- fectly divisible at the aggregate level of the economy. Under the survival assumption, we show that… Click to show full abstract
We study economies where all commodities are indivisible at the individual level, but per- fectly divisible at the aggregate level of the economy. Under the survival assumption, we show that any rationing equilibrium (Florig and Rivera [7]) in the discrete economy converges to a Walras equilibrium of the limit economy when the level of indivisibility becomes small. If the survival assumption is not satisfied, then rationing equilibrium converges to a hierarchic equilibrium (Florig [5]).
Keywords:
walrasian equilibrium;
limit competitive;
equilibrium;
equilibrium limit;
competitive equilibria
Journal Title: Journal of Mathematical Economics
Year Published: 2019
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Journal Title: Journal of Mathematical Economics
Year Published: 2019
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!