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- Title
VOLUNTARY AND EFFICIENT ALLOCATIONS ARE WALRASIAN.
- Authors
Silvestre, Joaquim
- Abstract
Let E be a private ownership economy. Call an allocation w "voluntary for a price vector p" if no agent can benefit by trading less at p. We prove that, under differentiability and interiority, if w is voluntary and Pareto efficient it is a competitive equilibrium for E. Perhaps surprisingly, production economies where some agents receive profit income require a stronger voluntariness condition than the one sufficient for exchange economies. The stronger condition singles out a commodity as a medium of exchange.
- Subjects
COST allocation; COST shifting; MICROECONOMICS; PROFIT; PRICES; MARKETING; PRICING; BUSINESS; DISTRIBUTION (Economic theory)
- Publication
Econometrica, 1985, Vol 53, Issue 4, p807
- ISSN
0012-9682
- Publication type
Article
- DOI
10.2307/1912655