The Korean Economic Review
Equilibrium in Production Economies with Nontransitive and Satiable Preferences
Guang Sug HahnYear 2007Vol. 23No. 2
It is shown that an equilibrium exists in a production economy whenpreferences are allowed to be nontransitive and satiated. In addition to thestandard assumptions, a new condition is introduced to handle satiation. Theconventional excess demand approach is modified to take into account theeffect of satiation on equilibrium.