On the Different Notions of Arbitrage and Existence of Equilibrium
Dana, Rose-Anne; Le Van, Cuong; Magnien, François (1999), On the Different Notions of Arbitrage and Existence of Equilibrium, Journal of Economic Theory, 87, 1, p. 169-193. http://dx.doi.org/10.1006/jeth.1999.2518
TypeArticle accepté pour publication ou publié
Journal nameJournal of Economic Theory
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Abstract (EN)In this paper we first prove an equilibrium existence theorem for finite dimensional economies with unbounded below consumption sets. We only assume that the individually rational utility set is compact and use the demand approach instead of the standard Negishi's approach. We next compare the different concepts of no-arbitrage that have been used in the literature and give conditions for equivalence between absence of arbitrage and existence of equilibrium. Lastly, we introduce the concept of strong unbounded arbitrage and show that the absence of strong unbounded arbitrage implies the compactness of the individually rational utility set.
Subjects / KeywordsEquilibrium; Arbitrage
Showing items related by title and author.
No-arbitrage, overlapping sets of priors and the existence of efficient allocations and equilibria in the presence of risk and ambiguity Dana, Rose-Anne; Le Van, Cuong (2008) Document de travail / Working paper
Overlapping Risk Adjusted Sets of Priors and the Existence of Efficient Allocations and Equilibria with Short-Selling Le Van, Cuong; Dana, Rose-Anne (2010) Article accepté pour publication ou publié