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Proceedings of the National Academy of Sciences of the United States of America logoLink to Proceedings of the National Academy of Sciences of the United States of America
. 2000 May 9;97(10):5675–5678. doi: 10.1073/pnas.97.10.5675

Nas–Walras equilibria of a large economy

E Minelli *, H M Polemarchakis
PMCID: PMC25887  PMID: 10805818

Abstract

Individuals exchange contracts for the delivery of commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directly or through the payoffs of contracts. This encompasses economies with asymmetric information. Nash–Walras equilibria exist for large economies, even if utility functions are not quasi-concave and choice sets are not convex, which is the case in standard settings; the separation of the purchase from the sale of contracts and the pooling of the deliveries on contracts guarantee that the markets for commodities clear.


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