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The Walrasian objection mechanism and Mas-Colell’s bargaining set in economies with many commodities

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Abstract

We study the Walrasian objection mechanism in the framework of economies with a measure space of agents and a separable Banach space of commodities whose positive cone has a non-empty interior. We provide several characterizations of Walrasian objections and use them to study the bargaining set of the economy, as defined in Mas-Colell (J Math Econ 18(2):129–139, 1989). Our main result shows that whenever the measure space of agents is saturated, every non-competitive allocation can be blocked with a Walrasian objection. This implies that the bargaining set, the core and the set of competitive allocations are equivalent solution concepts.

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Correspondence to Niccolò Urbinati.

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Relevant improvements to this paper were suggested by the Referees, to whom I am especially grateful. I also wish to thank M. G. Graziano, M. LiCalzi and the Editor for their useful comments and their suggestions.

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Urbinati, N. The Walrasian objection mechanism and Mas-Colell’s bargaining set in economies with many commodities. Econ Theory 76, 45–68 (2023). https://doi.org/10.1007/s00199-022-01454-0

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