Competitive equilibrium and indivisibles
Abstract
Abstract This paper studies the existence of competitive equilibrium in markets with indivisibles. The basis of the paper is a theorem that relates the existence of equilibrium to the core of certain associated cooperative games. From this result, we obtain a significant improvement on a classical result in this literature. We then characterize the existence of equilibrium in a two-agent three-good economy, showing that, in this particular context, the existence of equilibrium is more likely when goods are complements than when they are substitutes.
Fields of Study & Subjects
Economic theories and models
Game Theory and Voting Systems
Economic Theory and Institutions
Publication details
- Journal / source
- International Review of Economics
- Volume
- 73
- Issue
- 1
- Publication date
- 10 March 2026
- Language
- EN