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- W184368843 abstract "We consider a market with a set of unit demand buyers and a set of heterogeneous goods. We assume that the utility of each buyer i from a good j can be any arbitrary but continuous and decreasing function of price of j and is not necessarily quasi-linear (note that we can model any smooth budget constraint in this form). We give a constructive proof for the existence of Walrasian equilibria and show that set of Walrasian equilibria form a complete lattice. Furthermore we show that the mechanism that uses the smallest Walrasian equilibrium for allocation/prices is incentive compatible. Note that since utilities are not quasi-linear in prices, VCG mechanisms do not work. Our main contribution is an inductive characterization of the prices/allocations of Walrasian equilibria. Our constructive proof for the existence is also based on the same induction and does not rely on any fixed point theorem. As such, it provides new insight to the structure of the equilibria. We reveal striking similarities between the prices at the lowest Walrasian equilibrium and payments in VCG mechanisms." @default.
- W184368843 created "2016-06-24" @default.
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- W184368843 date "2010-06-24" @default.
- W184368843 modified "2023-09-26" @default.
- W184368843 title "Walrasian Equilibrium for Unit Demand Buyers with Non-quasi-linear Utilities" @default.
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