Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80226
Authors: 
Herings, P. J. J.
Polemarchakis, H.
Year of Publication: 
2001
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2001-28
Abstract: 
At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: endowments need not satisfy an interiority condition, utility functions need only satisfy a very weak monotonicity requirement, and the asset return matrix allows for redundant assets. Prices of assets may permit arbitrage. At equilibrium, though restricted through endogenously determined trading constraints, arbitrage possibilities may persist; in an example, an individual holds an arbitrage portfolio.
Subjects: 
Incomplete asset market
Fix-price equilibrium
Arbitrage
JEL: 
D45
D52
D60
Document Type: 
Working Paper

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