Equilibrium concepts in the large-household model

This paper formulates equilibrium concepts in the large (non atomic) household model under the team notion, characterizes a class of equilibrium allocations, explores whether an equilibrium allocation in the large-household model is a limit of equilibrium allocations in the finite-household model, and establishes existence of equilibrium allocations generated by generalized Nash bargaining.Search, large household, equilibrium concept, team

Equilibrium Concepts in the Large Household Model

This paper formulates equilibrium concepts in the large (non atomic) household model under the team interpretation, characterizes a class of equilibrium allocations, explores whether an equilibrium allocation in the large-household model has a foundation in the finite-household model, and establishes the existence of equilibrium allocations generated by generalized Nash bargaining.Search; Large household; Equilibrium concept; Team

Existence of Monetary Steady States in a Matching Model: Indivisible Money

Existence of a monetary steady state is established for a random matching model with divisible goods, indivisible money, and take-it-or-leave-it offers by consumers. There is no restriction on individual money holdings. The background environment is that in papers by Shi and by Trejos and Wright. The monetary steady state shown to exist has nice properties: the value function, defined on money holdings, is increasing and strictly concave, and the measure over money holdings has full support.