Replica core limit theorem for economies with satiation

Abstract

Dividend equilibrium, defined by Aumann and Dreze (1986), is one of the most general competitive equilibrium concepts for markets that include satiated consumers. Konovalov (2005) shows a core equivalence theorem to the dividend equilibrium using the concept of rejective core. Konovalov’s argument, however, is based on the setting of a continuum atomless economy with a finite number of types, and the core limit problem for dividend equilibrium remains unsolved. In a previous paper, Urai and Murakami (2016), we provided a generalization of the Debreu–Scarf (1963) core limit theorem for monetary overlapping generations economies under an extended concept of replica core allocation. In this paper, we show that the concept and method also provide rejective core limit and equivalence theorems for economies with satiation.