On Edgeworth Equilibrium for a Multiregional Economic System

Abstract

In the paper, we extend our investigations of Edgeworth allocations in non-classic markets being some modifications of the well-known Arrow-Debreu model. Existence and core equivalence problems for Edgeworth equilibria in a model of multi-regional economic system are considered. It is shown that regional strict autarchy property guarantees coincidence of the fuzzy core and the set of Edgeworth plans of the economies under consideration. By uniting strict autarchy property and ”no cornucopia” assumption we obtain a new Edgeworth equilibrium existence theorem without rather complicated bounded transferability requirement applied in the previous existence results. The proof is based on appropriate generalization of the famous Scarf Theorem on the core to the case of fuzzy NTU cooperative game.