Existence of pseudo-equilibria in a financial economy

Philippe Bich (1) , Bernard Cornet (2, 3, 1)

1 CES - Centre d'économie de la Sorbonne
2 Department of economics, University of Kansas
3 PSE - Paris School of Economics

We prove the existence of a pseudo-equilibrium in a financial economy with incomplete markets in which the agents may have nonordered preferences. We use a fixed-point-like theorem of [5] that generalizes the results by Hirsch, Magill and Mas-Colell [18] and Husseini, Lasry and Magill [19] to encompass the framework considered by Gale and Mas-Colell ([14], [15]).

Mots clés: Pseudo-equilibrium; incomplete markets; nonordered preferences; fixed-point-like theorems; Grassmann manifold

Domaines: Economies et finances

Philippe Bich, Bernard Cornet. Existence of pseudo-equilibria in a financial economy. Journal of Fixed Point Theory and Applications, 2009, 6 (2), pp.305-319. ⟨10.1007/s11784-009-0125-6⟩. ⟨hal-00629764⟩