A model of commodity differentiation with indivisibilities and production (Q2460219)

This paper deals with a general equilibrium model of an economy with production and with a continuum of producers and commodities. The commodities are assumed to be indivisible and differentiated which means that they are specified by integer-valued vectors of characteristics. The formal model includes an atomless measure space of producers and consumers, and a compact metric space of commodity characteristics with an integer-valued Borel measure. The main result consist in the general equilibrium existence theorem for such an economy.