Research objectives and content:
The aim of this project is to characterize the perfect competitive economies with respect to the strategic behaviour of coalitions and with respect to cooperations solutions. We are interested in studying the inability of small coalitions to block as a test of perfect competition. Precisely, we propose to extend Grodal's (1972) result, and therefore Schmeidler's (1972), result to atomless economies wit an infinite number of commodities, in relation with the thickness of markets, following Astray and Zymase (1994) work. Thus, we are interested in introducing perfect competition tests, involving coalition formation, and their relation with other tests suggested in order to distinguish the mere existence of Walrasian equilibrium from the deeper fact that the economy is perfectly competitive. We remark that FEUNL is a promotion of the interexchange and exchange of intellectual activities with other centres. Thus we are interested in strengthening the research through conversations and discussions with foreign and Portuguese researchers and also through the participation in international meetings.
Training content (objective, benefit and expected impact)
The main objective of the project is to characterize the perfect competitive economies in terms of the inability of small coalitions to block. The analysis of the characterization of perfect competitive economies in a continuum set up m stand reason that there should be some notion of approximation for which large economies almost pass the perfect competition tests. These are matters of must of results addressing atomless economies and justify that some attention must be
Links with industry / industrial relevance given to the finite and asymptotic framework.