Competitive Equilibria without Free Disposal or Nonsatiation

When nonsatiation or free disposal fail, competitive equilibria are either weak, when the individual budget constraint is imposed with equality, or strong, when the budget constraint is imposed as a weak inequality. Weak competitive equilibria exist under standard assumptions since the aggregate demand function satisfies Walras ’ law. This is the case even though prices cannot be restricted to a contractible domain. Strong competitive equilibria may fail to exist under standard assumptions. A boundary condition on the aggregate demand function guarantees, nevertheless, the existence of strong competitive equilibria. 1