It has long been known that in economies with satiation, the set of competitive equilibria does not coincide with the limiting core of an economy. In dividend equilibria, introduced independently by a number of authors, the budget excess is allowed to be divided among consumers as dividends and equilibrium existence is restored. In this paper a new notion of blocking which leads to core - dividend equilibrium equivalence is introduced. Specifically, it is shown that an allocation is a dividend equilibrium if and only if a corresponding equal treatment allocation of a large economy is in the core.

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Economic Theory
Erasmus School of Economics

Konovalov, A. (2005). The core of an economy with satiation. Economic Theory, 25(3), 711–719. doi:10.1007/s00199-003-0462-4