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The economics of equilibrium with indivisible goods

Abstract:
This paper develops a theory of competitive equilibrium with indivisible goods based entirely on economic conditions on demand. The key idea is to analyze comple- mentarity and substitutability between bundles of goods, rather than merely between goods themselves. This approach allows us to formulate sufficient and essentially nec- essary conditions for equilibrium existence—which unify settings with complements and settings with substitutes. Our analysis has implications for auction design.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1093/restud/rdaf106

Authors

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
St Catherine's College
Role:
Author
ORCID:
0000-0002-6570-1903


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Funder identifier:
https://ror.org/0472cxd90
Grant:
949699


Publisher:
Oxford University Press
Journal:
Review of Economic Studies More from this journal
Publication date:
2025-12-29
Acceptance date:
2025-10-29
DOI:
EISSN:
1467-937X
ISSN:
0034-6527


Language:
English
Pubs id:
2320755
Local pid:
pubs:2320755
Deposit date:
2025-11-10
ARK identifier:

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