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arXiv · 1808.07924

The Structure of Equilibria in Trading Networks with Frictions

Jan Christoph Schlegel
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Abstract

Several structural results for the set of competitive equilibria in trading networks with frictions are established: The lattice theorem, the rural hospitals theorem, the existence of side-optimal equilibria, and a group-incentive-compatibility result hold with imperfectly transferable utility and in the presence of frictions. While our results are developed in a trading network model, they also imply analogous (and new) results for exchange economies with combinatorial demand and for two-sided matching markets with transfers.

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Jan Christoph Schlegel. 2018-08-23. The Structure of Equilibria in Trading Networks with Frictions. https://arxiv.org/abs/1808.07924

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