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Contribution to Book
When Non-transitive Relations Take Maxima and Competitive Equilibria Can't Be Beat
Economic Theory and International Trade (2003)
  • Ted Bergstrom , University of California, Santa Barbara
Abstract

The paper generalizes theorems of Ky Fan and Hugo Sonnenschein on the existence of maximal elements for non-transitive relations. I used these results to show that a binary relation could be constructed whose maximal element must be a competitive equilibrium. Thus proving the existence of competitive equilibrium under somewhat more general conditions than had been done previously. In 1975, I thought this was a useful extension of the Gale Mas Collel existence theorem. Journal referees then didn't agree with me, so I let it ripen in my desk for 15 years. I still think it is worth looking at if you are interested in the existence of competitive equilibrium or in maximization of funny preference orderings.

Keywords
  • existence of competitive equilibrium,
  • non-transitive consumers,
  • maximal elements,
  • Arrow-Debreu model
Disciplines
Publication Date
July 1, 2003
Editor
William Neuefeind
Publisher
Springer Verlag
Series
Citation Information
Ted Bergstrom. "When Non-transitive Relations Take Maxima and Competitive Equilibria Can't Be Beat" VerlinEconomic Theory and International Trade (2003)
Available at: http://works.bepress.com/ted_bergstrom/61/