LIMITED ARBITRAGE IS NECESSARY AND SUFFICIENT FOR THE EXISTENCE OF A COMPETITIVE-EQUILIBRIUM WITH OR WITHOUT SHORT SALES

被引:23
作者
CHICHILNISKY, G
机构
[1] STANFORD UNIV,DEPT OPERAT RES,STANFORD,CA 94305
[2] COLUMBIA UNIV,NEW YORK,NY
关键词
D O I
10.1007/BF01213646
中图分类号
F [经济];
学科分类号
02 ;
摘要
A condition of limited arbitrage is defined on the endowments and the preferences of the traders in an Arrow-Debreu economy. Theorem 1 establishes that limited arbitrage is necessary and sufficient for the existence of a competitive equilibrium in markets with or without short sales. Limited arbitrage bounds utility arbitrages, the diversity of the traders in the economy, and the gains from trade which they can afford from initial endowments (Proposition 2); it is related to but nonetheless different from the no-arbitrage condition used in finance. Theorem 2 establishes that an Arrow - Debreu economy has a competitive equilibrium if and only if every one of its subeconomies with N + 1 traders does, where N is the number of commodities. Limited arbitrage has been shown elsewhere to be equivalent to the existence of the core [16], to the contractibility of spaces of preferences and to the existence of continuous anonymous social choice rules which respect unanimity [10], [14], [15], [16].
引用
收藏
页码:79 / 108
页数:30
相关论文
共 31 条
[1]  
ARROW K, 1954, ECONOMETRICA, V22, P264
[2]  
ARROW KJ, 1986, GENERAL COMPETITIVE
[3]   NECESSARY AND SUFFICIENT CONDITIONS FOR A RESOLUTION OF THE SOCIAL CHOICE PARADOX [J].
CHICHILNISKY, G ;
HEAL, G .
JOURNAL OF ECONOMIC THEORY, 1983, 31 (01) :68-87
[4]   COMPETITIVE-EQUILIBRIUM IN SOBOLEV SPACES WITHOUT BOUNDS ON SHORT SALES [J].
CHICHILNISKY, G ;
HEAL, GM .
JOURNAL OF ECONOMIC THEORY, 1993, 59 (02) :364-384
[5]   INTERSECTING FAMILIES OF SETS AND THE TOPOLOGY OF CONES IN ECONOMICS [J].
CHICHILNISKY, G .
BULLETIN OF THE AMERICAN MATHEMATICAL SOCIETY, 1993, 29 (02) :189-207
[6]   SOCIAL CHOICE AND THE TOPOLOGY OF SPACES OF PREFERENCES [J].
CHICHILNISKY, G .
ADVANCES IN MATHEMATICS, 1980, 37 (02) :165-176
[7]  
CHICHILNISKY G, 1994, EC LETT NOV
[8]  
CHICHILNISKY G, 1982, Q J EC MAY, P337
[9]  
CHICHILNISKY G, 1992, LTD ARBITRAGE EQUILI
[10]  
CHICHILNISKY G, 1994, AM EC REV