We study an overlapping generation model of Diamond's type. In contrast to Diamond, we do not assume that the technology can be represented by an aggregate neoclassical production function. Rather, we study the case in which (i) the technology consists of a finite number of constant coefficient...

We show that production economies are tatonnement stable if consumers satisfy the weak axiom of revealed preference. To ensure that producer supply decisions are well defined, we restrict prices in the tatonnement so that positive profits cannot occur but do allow supply decisions to be...