1. Core equivalences for equilibria supported by non-linear prices.
- Author
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Basile, Achille and Graziano, Maria
- Subjects
NONLINEAR pricing ,EQUIVALENCE classes (Set theory) ,ORDERED linear topological spaces ,EDGEWORTH expansions ,LYAPUNOV functions ,ARBITRAGE pricing theory - Abstract
The goal of this paper is to provide some new cooperative characterizations and optimality properties of competitive equilibria supported by non-linear prices. The general framework is that of economies whose commodity space is an ordered topological vector space which need not be a vector lattice. The central notion of equilibrium is the one of personalized equilibrium introduced by Aliprantis et al. (J Econ Theory 100:22-72, ). Following Herves-Beloso and Moreno-Garcia (J Math Econ 44:697-706, ), the veto power of the grand coalition is exploited in the original economy and in a suitable family of economies associated to the original one. The use of Aubin coalitions allows us to connect results with the arbitrage free condition due to non-linear supporting prices. The use of rational allocations allows us to dispense with Lyapunov convexity theorem. Applications are provided in connection with strategic market games and economies with asymmetric information. [ABSTRACT FROM AUTHOR]
- Published
- 2013
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