Walrasian equilibrium in large, quasi-linear markets
- Eduardo Azevedo ,
- E. Glen Weyl ,
- Alexander White
Theoretical Economics |
In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents’ preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.