On the equilibrium prices of a regular locally Lipschitz exchange economy
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Abstract
We extend classical results by Debreu and Dierker about equilibrium prices of a regular economy with continuously differentiable demand functions/excess demand function to a regular exchange economy with these functions being locally Lipschitz. Our concept of a regular economy is based on Clarke’s concept of regular value and we show that such a regular economy has a finite, odd number of equilibrium prices, the set of economies with infinite number of equilibrium prices has Lebesgue measure zero and there exist locally Lipschitz selections of equilibrium prices around a regular economy.
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Keywords
Brower’s degree, Sard’s theorem, essentially smooth Lipschitz map, nonsmooth equations, regular value, regular exchange economies, equilibrium price
References
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