Equilibria in infinite-dimensional production economies with convexified coalitions
Economic Theory, 17 (1):
121--139 (January 2001)Abstract
This paper deals with a private ownership production economy assuming that the commodity space is infinite-dimensional. It is first showed that the fuzzy core allocations, a concept that goes back to J.-P. Aubin, are in a one-to-one correspondence with certain core allocations of a continuum economy suitably defined. This result is obtained under convexity of preferences and production sets and separability of the commodity space. In the case of nonconvex preferences and production sets, the set of fuzzy coalitions can be enlarged in order to obtain that every allocation of the core accordingly defined is supported by a non zero price. The proof of the equivalence result when the positive cone of the commodity space has the empty interior, is obtained under assumptions of properness for preferences relations and production sets.