UCL Department of Economics


CeMMAP Seminar - Alfred Galichon (NYU)

21 November 2023, 12:30 pm–1:45 pm

UCL Flag

Existence of a Competitive Equilibrium with Substitutes, with Applications to Matching and Discrete Choice Models with Eugene Choo, Charles Liang and Simon Weber

Event Information

Open to



Andrei Zeleneev

Abstract: We propose new results for the existence and uniqueness of a general nonparametric and nonseparable competitive equilibrium with substitutes. These results ensure the invertibility of a general competitive system. The existing literature has focused on the uniqueness of a competitive equilibrium assuming that existence holds. We introduce three properties that our supply system must satisfy: weak substitutes, pivotal substitutes, and responsiveness. These properties are sufficient to ensure the existence of an equilibrium, thus providing the existence counterpart to Berri, Gandhi and Haile's uniqueness results.
For two important classes of models, bipartite matching models with full assignment and discrete choice models, we show that both models can be reformulated as a competitive system such that our existence and uniqueness results can be readily applied.
We also provide a robust algorithm to compute the unique competitive equilibrium.
Furthermore, we argue that our results are particularly useful for studying imperfectly transferable utility matching models with full assignment and non-additive random utility models.

Location: IFS Conference room or click here

Meet the speaker.

Link to seminar series.