On characterizing the probability of survival in a large competitive economy

Rabi N. Bhattacharya; Mukul Majumdar

doi:10.1007/PL00013702

On characterizing the probability of survival in a large competitive economy

Rabi N. Bhattacharya, Mukul Majumdar

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4 Scopus citations

Abstract

We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

Original language	English (US)
Pages (from-to)	133-153
Number of pages	21
Journal	Review of Economic Design
Volume	6
Issue number	2
DOIs	https://doi.org/10.1007/PL00013702
State	Published - 2001
Externally published	Yes

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

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10.1007/PL00013702

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AB - We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

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On characterizing the probability of survival in a large competitive economy

Abstract

ASJC Scopus subject areas

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