Values of Non-Differentiable Markets with a Continuum of Traders

Sergiu Hart

(Acrobat PDF file)

The main result is that in perfectly competitive markets, every value allocation is competitive. The model used is that of a non-atomic continuum of traders, both in a Walrasian and in a transferable utility (monetary) market. No differentiability assumptions are made. The problems of the existence of the value and of the converse to the above result (i.e., that every competitive allocation is also a value allocation) are also studied.