Abstract

When altruistic agents engage in voluntary transfers as well as in Walrasian trading, a competitive equilibrium exists. However, neither the first nor the second classical welfare theorem holds. Thus, an equilibrium need not be Pareto efficient and an efficient outcome need not be supported as an equilibrium.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call