Abstract
In this paper, we consider a continuum economy ℰ with a finite number of types of agent, and several private and public goods. The main result of the paper is that the graph of the equal-treatment Lindahl equilibria mapping is the unique abstract stable set with respect to the dominance relation in economies with crowding effects introduced by Vasil'ev et al, in 1995. The external stability of this mapping implies that, for any equal-treatment allocation χ in ℰ, that is not a Lindahl equilibrium, there exists a subeconomy ℰ of ℰ such that one of its equal-treatment Lindahl allocations blocks χ. This result is a counterpart of the theorem of Mas-Colell for Aumann's atomless market with private goods.
Original language | English |
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Pages (from-to) | 375-387 |
Number of pages | 13 |
Journal | Journal of Mathematical Economics |
Volume | 27 |
Issue number | 4 |
DOIs | |
State | Published - May 1997 |
Keywords
- Abstract stable set
- Lindahl correspondence
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics