Econometrica: Jan 1966, Volume 34, Issue 1
Existence of Competitive Equilibria in Markets with a Continuum of Traders
Robert J. AumannAn appropriate model for a market with many individually insignificant traders is one with a continuum of traders. Here it is proved that competitive equilibria exist in such markets, even though individual preferences may not be convex. Such a result is not true for markets with finitely many traders.
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