It is well known that an equilibrium in the Arrow-Debreu model may fail to exist if a very restrictive condition called the survival assumption is not satisfied.We study two approaches that allow for the relaxation of this condition.Danilov and Sotskov (1980), and Florig (1998a) developed a concept of a generalized equilibrium based on a notion of hierarchic prices.Marakulin (1988, 1990) proposed a concept of an equilibrium with non-standard prices.In this paper, we establish the equivalence between non-standard and hierarchic equilibria.Furthermore, we show that the set of non-standard equilibria coincides with the fuzzy rejective core of an economy and is generically finite for any specified system of dividends.
|Place of Publication||Tilburg|
|Number of pages||43|
|Publication status||Published - 2001|
|Name||CentER Discussion Paper|