Competitive equilibrium when preferences change over time

Erzo G.J. Luttmer, Thomas Mariotti

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


We show the existence of a competitive equilibrium in an economy with many consumers whose preferences may change over time. The demand correspondence of an individual consumer is determined by the set of subgame-perfect equilibrium outcomes in his intrapersonal game. For additively separable preferences with concave period utility functions that are unbounded above, this demand correspondence will satisfy the usual boundary conditions. Whenever consumers can recall their own mixed actions, this correspondence is convex-valued. This ensures the existence of a symmetric competitive equilibrium.

Original languageEnglish (US)
Pages (from-to)679-690
Number of pages12
JournalEconomic Theory
Issue number3
StatePublished - Apr 2006


  • Changing preferences
  • Competitive equilibrium


Dive into the research topics of 'Competitive equilibrium when preferences change over time'. Together they form a unique fingerprint.

Cite this