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arXiv · 2412.07946

The Economics of Equilibrium with Indivisible Goods

Ravi Jagadeesan·Alexander Teytelboym
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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 complementarity and substitutability between bundles of goods, rather than merely between goods themselves. This approach allows us to formulate sufficient, and essentially necessary, conditions for equilibrium existence, which unify settings with complements and settings with substitutes. Our analysis has implications for auction design.

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Ravi Jagadeesan, Alexander Teytelboym. 2024-12-10. The Economics of Equilibrium with Indivisible Goods. https://arxiv.org/abs/2412.07946

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