Arbitrage, Equilibrium and Nonsatiation

In his seminal paper on arbitrage and competitive equilibrium in unbounded exchange economies, Werner (Econometrica, 1987) proved the existence of a competitive equilibrium, under a price noarbitrage condition, without assuming either local or global nonsatiation. Werner's existence result contrasts sharply with classical A substantial part of the paper was written while Allouch was at CERMSEM, University of Paris 1, and at the Department of Finance at the University of Alabama. Allouch thanks CERMSEM, Paris 1, and the Department of Finance at the University of Alabama for their generous support. This paper was begun while Le Van was visiting the Department of Finance at the University of Alabama. Le Van gratefully acknowledges the support and hospitality of the Department of Finance at the University of Alabama. The current version of the paper was completed while Page was visiting CERMSEM at Paris 1 and the Department of Economics at Warwick. Page gratefully acknowledges the support and hospitality of CERMSEM, Paris 1, and the Department of Economics at Warwick. Page also acknowledges generous support from the Department of Finance at the University of Alabama.