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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 14, No. 2, pp.127-152
ISSN: 1225-0279 (Print)
Print publication date 31 May 2001
Received 19 Jun 2001 Revised 18 Jan 2002

Competitive Equilibrium with Non-Concavifiable Preferences

Dongchul Won
Department of Industrial Information, Kongju National University, 527 Yesan, Choongnam, 340-800, South Korea, Tel: +82-41-331-0630, Fax: +82-41-332-2485 dcwon@kongju.ac.kr

JEL Classification : D5O, D5l, C62

Abstract

The no free lunch condition is neither necessary nor sufficient for the utility set to be closed and bounded in asset markets where the preferred sets do not have the same recession cone. This paper characterizes the utility set with non-concavifiable preferences and provides the existence of competitive equilibrium when the set of efficient allocations is not necessarily bounded.

Keywords:

Competitive equilibrium, No free lunch, Non-concavifiable preferences

Acknowledgments

This paper is a substantial revision of the paper presented at the Econometric Society's 7th World Congress in Tokyo on August 1995. The author is grateful to two anonymous referees for valuable remarks and suggestions.

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