EQUILIBRIUM, AUCTION, AND GENERALIZED GROSS SUBSTITUTES AND COMPLEMENTS

Abstract

We study a market model where there are many different types of indivisible goods for sale. The goods can be substitutable or complementary. There are multiple units of each good. Each agent may consume several goods and has quasi-linear utilities in money. A general condition is introduced to guarantee the existence of a Walrasian equilibrium and generalize gross substitutes, strong substitutes, and gross substitutes and complements conditions. Several characterizations of this new condition are identified. A price adjustment process is proposed which converges globally to a Walrasian equilibrium.