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Lone wolves in competitive equilibria

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Lone wolves in competitive equilibria
LW
Scott Duke KominersHarvard Business SchoolRavi JagadeesanRoss Rheingans-Yoo1 editions

This paper develops a class of equilibrium-independent predictions of competitive equilibrium with indivisibilities. Specifically, we prove an analogue of the "Lone Wolf Theorem" of classical matching theory, showing that when utility is perfectly transferable, any agent who does not participate in trade in one competitive equilibrium must receive her autarky payoff in every competitive equilibrium. Our results extend to approximate equilibria and to settings in which utility is only approximately transferable.

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4 credited authorsSearch language english

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  • Scott Duke Kominers

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  • Harvard Business School

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  • Ravi Jagadeesan

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  • Ross Rheingans-Yoo

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