The Library
The geometry of arbitrage and the existence of competitive equilibrium
Tools
Allouch, Nizar, Le Van, Cuong and Page Jr., Frank H. (2002) The geometry of arbitrage and the existence of competitive equilibrium. In: European Workshop on General Equilibrium Theory, Maastricht, Netherlands, 17-19 May 2001. Published in: Journal of Mathematical Economics, 38 (4). pp. 373-391. ISSN 0304-4068.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Abstract
We present the basic geometry of arbitrage, and use this basic geometry to shed new light on the relationships between various no-arbitrage conditions found in the literature. For example, under very mild conditions, we show that the no-arbitrage conditions of Hart [Journal of Economic Theory 9 (1974) 293] and Werner [Econometrica 55 (1987) 1403] are equivalent and imply the compactness of the set of utility possibilities. Moreover, we show that if agents' sets of useless net trades are linearly independent, then the Hart-Werner conditions are equivalent to the stronger condition of no-unbounded-arbitrage due to Page [Journal of Economic theory 41 (1987) 392]-and, in turn, all are equivalent to compactness of the set of rational allocations. We also consider the problem of existence of equilibrium. We show, for example, that under a uniformity condition on preferences weaker than Werner's uniformity condition, the Hart-Werner no-arbitrage conditions are sufficient for existence. With an additional condition of weak no-half-lines-a condition weaker than Werner's no-half-lines condition-we show that the Hart-Werner conditions are both necessary and sufficient for existence. (C) 2002 Published by Elsevier Science B.V.
Item Type: | Conference Item (Paper) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HC Economic History and Conditions Q Science > QA Mathematics H Social Sciences |
||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | Journal of Mathematical Economics | ||||
Publisher: | Elsevier | ||||
ISSN: | 0304-4068 | ||||
Official Date: | December 2002 | ||||
Dates: |
|
||||
Volume: | 38 | ||||
Number: | 4 | ||||
Number of Pages: | 19 | ||||
Page Range: | pp. 373-391 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access | ||||
Conference Paper Type: | Paper | ||||
Title of Event: | European Workshop on General Equilibrium Theory | ||||
Type of Event: | Other | ||||
Location of Event: | Maastricht, Netherlands | ||||
Date(s) of Event: | 17-19 May 2001 |
Data sourced from Thomson Reuters' Web of Knowledge
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |