Symmetric Smooth Consumption Externalities

Hervé Crès (1)

1 ECON - Département d'économie (Sciences Po)

Based on Arrow's model of a pure exchange economy with smooth consumption externalities, this paper studies how the internalization of external effects through a network of markets between agents introduces symmetry breakings in the set of equilibria. It shows indeed how identical agents can be treated asymmetrically by complete markets.

Keywords: Symmetric Smooth; Consumption

Domains: Humanities and Social Sciences; Economics and Finance

Hervé Crès. Symmetric Smooth Consumption Externalities. Journal of Public Economic Theory, 1996, 69 (2), pp.334 - 366. ⟨10.1006/jeth.1996.0058⟩. ⟨hal-03598166⟩