Axiomatizations of neoclassical concepts for economies

http://dx.doi.org/10.1016/S0304-4068(97)00025-6

Axiomatizations of neoclassical concepts for economies

Roberto Serrano^* and Oscar Volij
Department of Economics, Brown University, Providence, RI 02912, USA
Received 10 October 1996; accepted 2 May 1997. Available online 28 January 1999.

Abstract

We characterize the Pareto correspondence, the core and the Walras solution using the axioms of consistency, converse consistency and one-person rationality. Consistency and its converse are defined with respect to suitably constructed reduced economies for each case. Our results hold for the well-known class of coalitional production economies, which covers exchange economies as a particular case. The key reason to use this class is the observation that the reduction of an exchange economy yields a production economy.

Author Keywords: Consistency; Reduced economy; Core; Walrasian equilibrium