Acta mathematica scientia, Series B >
CONSTRUCTING EXAMPLES WITH 5 EQUILIBRIA FOR SYMMETRIC 3 ×|2 CES / LES PURE EXCHANGE ECONOMIES
Received date: 2012-12-13
Revised date: 2012-01-10
Online published: 2012-11-20
Supported by
This work is supported by National Natural Science Foundation of China (70825003 and 70972001), National Social Science Foundation of China (07AJL002) and Arts and Humanities Program of Essential Research Foundation of Beihang University (YWF-11-06-007).
This paper explores the existence of multiple equilibria for symmetric 3 indi-vidual, 2 good CES / LES pure exchange economies. Analytically, we show that there are no more than 5 equilibria in such economies. The number of equilibria varies from 5 to 3 then to 1. We generalize our analytical results of existence of 1, 3, 5 equilibria for a wide range of parametrizations. We also provide concrete examples of 1, 3, 5 equilibria with parameter zones specified.
Key words： multiple equilibria; CES / LES utility function
HUANG Hui , SHI Xiao-Jun , ZHANG Shun-Ming . CONSTRUCTING EXAMPLES WITH 5 EQUILIBRIA FOR SYMMETRIC 3 ×|2 CES / LES PURE EXCHANGE ECONOMIES[J]. Acta mathematica scientia, Series B, 2012 , 32(6) : 2411 -2430 . DOI: 10.1016/S0252-9602(12)60189-1
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