<p>If the competitive equilibrium exists, it must lie on the contract curve where two consumers' marginal rate of substitution are the same. Also, this equilibrium lies inside the zone of mutual advantages (area where the indifference curves intersect with the endowment) because trade is voluntary. If consumers’ marginal rates of substitution vary continuously with their consumption levels then a competitive equilibrium exists</p>

CC BY-SA 4.0
2018-12-17T18:16:47.890Z
Could you please provide a reference for your strong claim "If consumers’ marginal rates of substitution vary continuously with their consumption levels then a competitive equilibrium exists"?
Giskard
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2018-12-17T15:07:29.997Z
2018-12-17T15:07:29.997Z
Becky
<p>I got that in an exchange economy, conditions as preferences being continuous, strictly convex and strongly monotone and <span class="math-container">$\sum_i \omega_i\gg 0$</span> are <strong>sufficient</strong> conditions for the existence of a Walrasian (or competitive) equlibirum. </p>

<p>Are there <strong>necessary</strong> conditions for the existence of an equilibrium?</p>

<microeconomics><general-equilibrium><competitive-equilibrium>
Necessary conditions for the existence of a competitive equilibirum
PostDocing
# Necessary conditions for the existence of a competitive equilibirum

(Asked by: username_0 on 2018-11-11)

I got that in an exchange economy, conditions as preferences being continuous, strictly convex and strongly monotone and $\sum\_i \omega\_i\gg 0$ are **sufficient** conditions for the existence of a Walrasian (or competitive) equlibirum.

Are there **necessary** conditions for the existence of an equilibrium?

**Tags:** microeconomics, general-equilibrium, competitive-equilibrium

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## 1 answers

### Answer by username_1 on 2018-12-17. Score: -2

If the competitive equilibrium exists, it must lie on the contract curve where two consumers' marginal rate of substitution are the same. Also, this equilibrium lies inside the zone of mutual advantages (area where the indifference curves intersect with the endowment) because trade is voluntary. If consumers’ marginal rates of substitution vary continuously with their consumption levels then a competitive equilibrium exists

> **Comments:**
> **username_2**: Could you please provide a reference for your strong claim "If consumers’ marginal rates of substitution vary continuously with their consumption levels then a competitive equilibrium exists"?  

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