Equilibria with nonstandard prices in vector lattice overlapping generations economies

The paper investigates overlapping generations (OLG) economies in vector lattices framework. Agents’ preferences are assumed uniformly proper, though they may be nontransitive and incomplete. Existence is stated for the “equilibrium with nonstandard prices,” a notion that may be looked upon as a particular (or generalized, in other aspect) case of known “compensated equilibria” of OLG-economies. The difference is that compensated values are described via explicit formula given in nonstandard analysis terms. This approach enables more clear economic interpretation and shows some new properties of compensated values, such as their linearity over agents’ endowments. Also it allows easy to prove the existence of equilibria under classical additional assumptions on agents’ endowments.  2003 Elsevier Inc. All rights reserved