Abstract
We characterize the Pareto correspondence, the core and the Walras solution using the axioms of consistency, converse consistency and one-person rationality. Consistency and its converse are defined with respect to suitably constructed reduced economies for each case. Our results hold for the well-known class of coalitional production economies, which covers exchange economies as a particular case. The key reason to use this class is the observation that the reduction of an exchange economy yields a production economy.
Original language | English |
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Pages (from-to) | 87-108 |
Number of pages | 22 |
Journal | Journal of Mathematical Economics |
Volume | 30 |
Issue number | 1 |
DOIs | |
State | Published - 1 Jan 1998 |
Externally published | Yes |
Keywords
- C71
- Consistency
- Core
- D51
- Reduced economy
- Walrasian equilibrium
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics