A theory of a heterogeneous divisible commodity exchange economy
Journal of Mathematical Economics
0304-4068 (print)1873-1538 (online)
54 - 59
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Please cite this item using this persistent URLhttp://hdl.handle.net/11693/12257
In theoretical land economics the existence of a competitive equilibrium with an additive price is considered problematic. This paper studies the exchange and allocation of a heterogeneous divisible commodity such as land, which is modeled as a measurable space. In a 'land' trading economy with unordered convex preferences, the existence of a competitive equilibrium with an additive equilibrium price is proved. This paper demonstrates also the existence of a weak core and a fair allocation. (C) 2010 Elsevier B.V. All rights reserved.