Existence of Equilibria and Core Convergence in Economies with Bads.

Abstract

We consider an exchange economy in which there are infinitely many consumers and some commodities are bads, that is, cause disutility to consumers. We give an example of such an economy for which there is no competitive equilibrium or its variants (quasi- or psuedo-equilibrium). We also give examples of the failure of the so called uniform integrability condition of equilibrium allocations of increasingly populous property.