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Pure exchange economy: Given an initial endowment are multiple equilibria possible?

Yes. The Debreu version of the Sonnenschein-Mantel-Debreu theorem guarantees that excess demand has to satisfy very little restrictions if there are as many consumers as commodities. An explicit exam …
Michael Greinecker's user avatar
1 vote
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Second welfare theorem: can it be used to show there does not exist any competitive equilibr...

In every competitive equilibrium, a consumer's endowment is in their budget set. Since they choose an optimal point in the budget set, every consumer in a competitive equilibrium will receive a bundle …
Michael Greinecker's user avatar