The existence of equilibrium when excess demand obeys the weak axiom
John Quah
Abstract
This paper gives a non-fixed point theoretic proof of equilibrium existence when the excess demand function of an exchange economy obeys the weak axiom. The proof is simple and geometrically intuitive, and it also permits a weakening of the continuity assumption on the excess demand function. (This paper is a more developed and (one hopes) improved version of an earlier working paper entitled An Elementary Equilibrium Existence Theorem, Working Paper W6 (2000), Nuffield College, Oxford.)
Keywords: weak axiom, Gale-Nikaido-Debreu Lemma, existence of equilibrium, violations of transitivity
Date: February 2004 | Reference number(s): 2004-W07
Series: Nuffield College Economics Working Papers
JEL Classifications: C61, D11, D50