Research objectives and content
The main objective of the proposed research is to analyze what kind of models of continuum economies with an infinite-dimensional commodity space are perfectly competitive, that is, we are interested in nonatomic economies and the boundaries of perfect competition. For this, we introduce a perfect competition test that we call coalitional incentive compatibility test. More precisely,.the purpose of the project is to study this test in the infinite-dimensional case. We are also interested in an attempt at a comparative study with respect to other perfect competition test, such as Core-Walras equivalence test.
Training (objective benefit and expected impact)
The project is related to the recent work by Ostroy and Zame (1994). We consider an economy with a continuum of agents who behave strategically (in excess demand correspondences). The commodity space is a measure space. This kind of models is frequently used in many of the common models of commodity differentiation. See, for example, Mas-Colell (1975), Jones (1984), Ostroy and Zame (1994).