New approach ensures equilibrium in economies with unbounded short sales.
Researchers have found a new way to prove that equilibrium exists in economic models with unbounded short sales. Instead of focusing on agents' preferred sets, they looked at the preferred sets themselves. They discovered that if the sum of these sets is closed, equilibrium will exist. This condition was shown to guarantee the presence of equilibrium in the model. The study also identified specific cases where this condition can be applied and connected it to a classic condition from a previous study.