In a standard general equilibrium model it is assumed that there are no price restictionsand that prices adjust … infinitely fast to their equilibrium values. In this paper the set ofadmissible prices is allowed to be an arbitrary convex set …. For such an arbitrary set it cannotbe guaranteed that there exists a constrained equilibrium satisfying the usual …

(1986) as special cases. The paper presents a notion of competitive equilibrium, called Drèze equilibrium, for this class of … models, an extension of the concept as developed by Drèze (1975) for economies with divisible commodities subject to price … controls. It is shown that Drèze equilibrium allocations are equivalent to allocations induced by stable outcomes. One …