Econometrica Vol. 56 No. 2 1988
The Second Welfare Theorem with Nonconvex Preferences
open access
Abstract
The author proves several versions of the second welfare theorem for exchange economies with non convex preferences. One theorem asserts that, given a Pareto optimum f, one can find income transfers and a Walrasian quasiequilibrium g s uch that all but k agents are indifferent between f and g, where k is the number of commodities. Another theorem shows that, with probabil ity one in a particular formulation of a random sequence of economies , every Pareto optimum is close to a Walrasian equilibrium with incom e transfers.
- DOI
- 10.2307/1911076
- Volume
- 56
- Issue
- 2
- Pages
- 361
- Sources
- bibtex:phds-export.bib crossref openalex