A notion of "behavioral heterogeneity" of a finite population of households is modelled. It is shown that the higher the degree of behavioral heterogeneity the less sensitive depends the aggregate consumption expenditure ratio upon prices. As a consequence, behavioral heterogeneity implies a...

The core of an economy consists of those states of the economy that no group of agents can improve upon. A group of agents can improve upon a state of the economy if the group, by using the means available to it, can make each member of that group better off, regardless of the actions of the...