Axiomatic characterizations of the Walras correspondence for generalized economies

A generalized (pure exchange) economy consists of a list of agents, utility functions and initial endowments for each agent, and a net trade vector that describes the trade between the economy and the outside world. In this paper we extend the definition of Walras equilibria to generalized economies without free disposal of commodities. An existence result is presented and we provide two axiomatic characterizations of Walras allocations based on the axioms of consistency and converse consistency. Also, a characterization of the utility vectors corresponding to strictly positive Walras allocations is given. It is shown that the assumption of free disposal can, for generalized economies, lead to non-Pareto-optimal Walras allocations.