Externalities, consumption constraints and regular economies
Journal article: We consider a general model of pure exchange economies with consumption externalities. Households may have different consumption sets and each consumption set is described by a function called the possibility function. Utility and possibility functions depend on the consumptions of all households. Showing by means of an example that basic assumptions are not enough to guarantee generic regularity, we provide sufficient conditions for generic regularity in the space of endowments and possibility functions.
Author(s)
Jean-Marc Bonnisseau, Elena L. del Mercato
Journal
- Economic Theory
Date of publication
- 2010
Keywords JEL
Keywords
- Externalities
- Consumption constraints
- Competitive equilibrium
- Regular economies
Pages
- 123-147
URL of the HAL notice
Version
- 1
Volume
- 44