Faculty of Business Seminar Series / Fatma Aslan

Title: Competitive Equilibria in Shapley-Scarf Markets with Coalitional Trade

Abstract: We investigate the existence and properties of several types of competitive equilibrium in generalized Shapley-Scarf markets where trades are organized among exogeneous coalitions. Coalitional trade generates externalities in individual valuations of allocations. Equilibrium concepts differ according to the definition of the budget constraint of coalitions, and to the type of cooperation prevailing among partners. We show that both existence and properties of equilibria crucially depend on the properties of individual preferences. We also derive maximal preference domains for the existence of two specific types of equilibrium.

Place: Meeting Room AB2-345