4
$\begingroup$

Are there non monotonic preferences that are strictly convex and continues but the second welfare theorem does not hold for them?

$\endgroup$
1
  • 1
    $\begingroup$ Try $u_i(x_i, y_i) =-(x_i-1)^2-(y_i-1)^2 $ for $i\in\{1,2\}$ and total endowment of X and Y is $(4,4)$. $((2,2), (2,2))$ is Pareto efficient but not a competitive equilibrium. $\endgroup$
    – Amit
    Feb 12, 2017 at 15:28

0

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.