Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62256
Authors: 
Bank, Peter
Riedel, Frank
Year of Publication: 
2000
Series/Report no.: 
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 2000,104
Abstract: 
We prove existence of an Arrow-Debreu equilibrium when agents' preferences exhibit local substitution in the sense of Hindy, Huang, and Kreps (1992). Efficient allocations and supporting price functionals are identified and characterized. Under Hindy Huang Kreps preferences, equilibrium price processes are semimartingales for arbitrary endowments, but in general, they do not belong to the space suggested originally by Hindy and Huang (1992) due to an additional singular local time component.
Subjects: 
General Equilibrium
Local Substitution
Non Time Additive Utility
JEL: 
D51
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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