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Regular version of the site
Of all publications in the section: 4
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Article
Bogomolnaia A., Moulin H., Sandomirskiy F. et al. Econometrica. 2017. Vol. 85. No. 6. P. 1847-1871.

A mixed manna contains goods (that everyone likes), bads (that everyone dislikes), as well as items that are goods to some agents, but bads or satiated to others.

If all items are goods and utility functions are homothetic, concave (and monotone), the Competitive Equilibrium with Equal Incomes maximizes the Nash product of utilities: hence it is welfarist (determined utility-wise by the feasible set of profiles), single-valued and easy to compute.

We generalize the Gale-Eisenberg Theorem to a mixed manna. The Competitive division is still welfarist and related to the product of utilities or disutilities. If the zero utility profile (before any manna) is Pareto dominated, the competitive profile is unique and still maximizes the product of utilities. If the zero profile is unfeasible, the competitive profiles are the critical points of the product of disutilities on the efficiency frontier, and multiplicity is pervasive. In particular, the task of dividing a mixed manna is either good news for everyone, or bad news for everyone.

We refine our results in the practically important case of linear preferences, where the axiomatic comparison between the division of goods and that of bads is especially sharp. When we divide goods and the manna improves, everyone weakly benefits under the competitive rule; but no reasonable rule to divide bads can be similarly Resource Monotonic. Also, the much larger set of Non Envious and Efficient divisions of bads can be disconnected so that it will admit no continuous selection.

Added: Oct 14, 2016
Article
Zhelobodko E. V., Kokovin S. G., Parenti M. et al. Econometrica. 2012. Vol. 80. No. 6. P. 2765-2784.

We propose a model of monopolistic competition with additive preferences and variable marginal costs. Using the concept of "relative love for variety," we provide a full characterization of the free-entry equilibrium. When the relative love for variety increases with individual consumption, the market generates pro-competitive effects. When it decreases, the market mimics anti-competitive behavior. The constant elasticity of substitution is the only case in which all competitive effects are washed out. We also show that our results hold true when the economy involves several sectors, firms are heterogeneous, and preferences are given by the quadratic utility and the translog.

Added: Feb 5, 2013
Article
Zhelobodko E. V., Kokovin S. G., Parenti M. et al. Econometrica. 2012. Vol. 80. No. 6. P. 2765-2784.

We propose a model of monopolistic competition with additive preferences and variable marginal costs. Using the concept of “relative love for variety,” we provide a full characterization of the free-entry equilibrium. When the relative love for variety increases with individual consumption, the market generates pro-competitive effects. When it decreases, the market mimics anti-competitive behavior. The constant elasticity of substitution is the only case in which all competitive effects are washed out. We also show that our results hold true when the economy involves several sectors, firms are heterogeneous, and preferences are given by the quadratic utility and the translog.

Added: Nov 20, 2013
Article
Diermeier D., Egorov G., Sonin K. Econometrica. 2017. Vol. 85. No. 3. P. 851-870.
Added: Jan 5, 2017