General equilibrium with producers and brokers existence and regularity
Jouini, Elyès; Kallal, Hedi (1993), General equilibrium with producers and brokers existence and regularity, Economics Letters, 41, 3, p. 257-263. http://dx.doi.org/10.1016/0165-1765(93)90150-B
TypeArticle accepté pour publication ou publié
Journal nameEconomics Letters
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Abstract (EN)In this paper we prove the existence of general equilibrium with transaction costs generalizing Hahn's (Review of Economic Studies, 1973, 40, 449-461) model by introducing producers and nonconvexities (in particular we allow for increasing returns in transaction sets). We also recover any exchange economy as a special case and this allows us to analyze the effects of small frictions on bid-ask prices, consumption vectors and utilities. We prove that, generically, the induced perturbations are of the same order as the frictions.
Subjects / KeywordsEquilibrium; Exchange and Production Economies; Transaction Costs
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