Likely to be a very stupid doubt.

I am reading Douglas Gale's book "The Strategic Foundations of General Equilibrium", which presents a brief version of "Equilibrium in a Market with Sequential Bargaining" (pg 15). I am not sure how the model is being set up in the book. Maybe it is a typo, or maybe I am missing something which is extremely obvious.

The book says, "There is continuum of traders, M buyers, and N sellers of a N indivisible good".

I am not sure what this means:

  1. Is there a continuum of indivisible goods, each of which has M buyers and N sellers?

  2. Is there only one indivisible good, with a continuum of buyers and a continuum of sellers, with M and N being their measures, respectively?

I tried referring to the original paper and the latter seems to be the case, but I am not very confident.
Is the author referring to something I am completely missing?

  • $\begingroup$ I don't know the book, but to me this reads like all three are continua, where the the continuum of buyers has measure M and the continuum of sellers (each offering one unit of the good) has measure N. $\endgroup$
    – Bayesian
    May 30 at 10:23

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