Demand Types and competitive equilibrium with indivisibilities and income effects by Elizabeth Baldwin

Join us for another event in the Microeconomics Research Seminar Series, Autumn Term 2023.

Elizabeth Baldwin, from Hertford College, Oxford University, will present their research on Demand Types and competitive equilibrium with indivisibilities and income effects. 

Abstract

This talk provides a summary of four papers.  The central result is that of Baldwin et al (2021a).  Here, we show that the ``demand types'' framework of Baldwin and Klemperer (2019, see also Baldwin et al 2021) can capture agents' preferences over multiple units of indivisible goods even in the presence of income effects by placing conditions on the comparative statics of Hicksian demand. By applying the Equilibrium Existence Duality of Baldwin et al, (2023) we obtain a necessary and sufficient condition on demand types for the existence of equilibrium with income effects, for any number of agents: the unimodularity of the demand type vector set. We also show that each unimodular demand type forms a maximal domain of preferences for equilibrium existence in the presence of income effects. As an example, it follows that strong net substitutability is sufficient and is a maximal domain for the existence of equilibrium in the presence of income effects.  In order to explain all this, we spend much of the talk discussing the other papers mentioned above.

This seminar will be held in the Economics Common Room on Monday 11 December 2023 at 3.30pm. This event is open to all levels of study and is also open to the public.

To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.