General Equilibrium without Utility Functions: How far to go?
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General Equilibrium without Utility Functions: How far to go? / Balasko, Yves; Tvede, Mich.
Department of Economics, University of Copenhagen, 2009.Research output: Working paper › Research
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TY - UNPB
T1 - General Equilibrium without Utility Functions: How far to go?
AU - Balasko, Yves
AU - Tvede, Mich
N1 - JEL classification: C62, D11, D51
PY - 2009
Y1 - 2009
N2 - How far can we go in weakening the assumptions of the general equilibrium model? Existence of equilibrium, structural stability and finiteness of equilibria of regular economies, genericity of regular economies and an index formula for the equilibria of regular economies have been known not to require transitivity and completeness of consumers' preferences. We show in this paper that if consumers' non-ordered preferences satisfy a mild version of convexity already considered in the literature, then the following properties are also satisfied: 1) the smooth manifold structure and the diffeomorphism of the equilibrium manifold with a Euclidean space; 2) the diffeomorphism of the set of no-trade equilibria with a Euclidean space; 3) the openness and genericity of the set of regular equilibria as a subset of the equilibrium manifold; 4) for small trade vectors, the uniqueness, regularity and stability of equilibrium for two version of tatonnement; 5) the pathconnectedness of the sets of stable equilibria.
AB - How far can we go in weakening the assumptions of the general equilibrium model? Existence of equilibrium, structural stability and finiteness of equilibria of regular economies, genericity of regular economies and an index formula for the equilibria of regular economies have been known not to require transitivity and completeness of consumers' preferences. We show in this paper that if consumers' non-ordered preferences satisfy a mild version of convexity already considered in the literature, then the following properties are also satisfied: 1) the smooth manifold structure and the diffeomorphism of the equilibrium manifold with a Euclidean space; 2) the diffeomorphism of the set of no-trade equilibria with a Euclidean space; 3) the openness and genericity of the set of regular equilibria as a subset of the equilibrium manifold; 4) for small trade vectors, the uniqueness, regularity and stability of equilibrium for two version of tatonnement; 5) the pathconnectedness of the sets of stable equilibria.
KW - Faculty of Social Sciences
KW - equilibrium manifold
KW - natural projection
KW - demand functions
KW - non-ordered preferences
M3 - Working paper
BT - General Equilibrium without Utility Functions: How far to go?
PB - Department of Economics, University of Copenhagen
ER -
ID: 14249730