Discrete convexity and unimodularity. I

In this paper we develop a theory of convexity for a free Abelian group M (the lattice of integer points), which we call theory of discrete convexity. We characterize those subsets X of the group M that could be call "convex". One property seems indisputable: X should coincide with the set of all integer points of its convex hull co(X) (in the ambient vector space V). However, this is a first approximation to a proper discrete convexity, because such non-intersecting sets need not be separated by a hyperplane. This issue is closely related to the question when the intersection of two integer polyhedra is an integer polyhedron. We show that unimodular systems (or more generally, pure systems) are in one-to-one correspondence with the classes of discrete convexity. For example, the well-known class of g-polymatroids corresponds to the class of discrete convexity associated to the unimodular system A_n:={\pm e_i, e_i-ej} in Z^n.Comment: 26 pages, Late

Condorcet domains of tiling type

A Condorcet domain (CD) is a collection of linear orders on a set of candidates satisfying the following property: for any choice of preferences of voters from this collection, a simple majority rule does not yield cycles. We propose a method of constructing "large" CDs by use of rhombus tiling diagrams and explain that this method unifies several constructions of CDs known earlier. Finally, we show that three conjectures on the maximal sizes of those CDs are, in fact, equivalent and provide a counterexample to them.Comment: 16 pages. To appear in Discrete Applied Mathematic

Equilibria with indivisible goods and package-utilities

We revisit the issue of existence of equilibrium in economies with indivisible goods and money, in which agents may trade many units of items. In [5] it was shown that the existence issue is related to discrete convexity. Classes of discrete convexity are characterized by the unimodularity of the allowable directions of one-dimensional demand sets. The class of graphical unimodular system can be put in relation with a nicely interpretable economic property of utility functions, the Gross Substitutability property. The question is still open as to what could be the possible, challenging economic interpretations and relevant examples of demand structures that correspond to other classes of discrete convexity. We consider here an economy populated with agents having a taste for complementarity; their utilities are generated by compounds of specific items grouped in 'packages'. Simple package-utilities translate in a straightforward fashion the fact that the items forming a package are complements. General package-utilities are obtained as the convolution (or aggregation) of simple packageutilities. We prove that if the collection of packages of items, that generates the utilities of agents in the economy, is unimodular then there exists a competitive equilibrium. Since any unimodular set of vectors can be implemented as a collection of 0-1 vectors ([3]), we get examples of demands for each class of discrete convexity