Theoretical Economics 8 (2013), 281–290
Walrasian equilibrium in large, quasi-linear markets
Eduardo M. Azevedo, E. Glen Weyl, Alexander White
In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.
Keywords: Walrasian equilibrium, quasilinear utility, indivisible goods, continuum economies, complementary preferences
JEL classification: D51
Full Text: PRINT VIEW Supplementary appendix