Abstract

We study the Walras equilibrium price function of a linear exchange economy. We show that it is locally Lipschitz with respect to utility functions and initial endowments on the relative interior of the set of parameters where the price is unique. We also prove that it is never locally Lipschitz on the boundary. This extend previous result of J. M. Bonnisseau, M. Florig and A. Jofré [J. Optimization Theory Applications 109 (2001) 237–263, 264–288].

Author information

Contact details are reproduced from the original publication and may be historical.

Jean-Marc Bonnisseau

CERMSEM, Université de Paris 1, 106-112 Boulevard de l'Hôpital, 75647 Paris Cedex 13, France

jmbonni@univ-paris1.fr

Michael Florig

CERMSEM, Université de Paris 1, 106-112 Boulevard de l'Hôpital, 75647 Paris Cedex 13, France

florig@univ-paris1.fr

Keywords

  • Walras equilibrium
  • linear utility functions
  • sensitivity
  • Lipschitz

Mathematics Subject Classification

90C31; 91B42, 91B50

References

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Suggested citation

J.-M. Bonnisseau, M. Florig. “Boundary Behaviour of Equilibria for Linear Exchange Economies.” Journal of Convex Analysis 12 (2005), No. 2, 465–476. https://doi.org/10.68381/jca12032

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Published by Heldermann Verlag, 2005. Rights now held by Banach Press.