Statistics

Discrete mathematics

Engineering

Mathematical economics

Aerospace engineering

Economics

Matching (statistics)

Set (abstract data type)

Programming language

Geometry

Equivalence (formal languages)

Competitive equilibrium

Mathematics

Computer science

Intersection (aeronautics)

Product (mathematics)

Econometrica

An Equivalence Theorem between geometric structures and utility functions allows new methods for understanding preferences. Our classification of valuations into “Demand Types” incorporates existing definitions (substitutes, complements, “strong substitutes,” etc.) and permits new ones. Our Unimodularity Theorem generalizes previous results about when competitive equilibrium exists for any set of agents whose valuations are all of a “demand type.” Contrary to popular belief, equilibrium is guaranteed for more classes of purely‐complements than of purely‐substitutes, preferences. Our Intersection Count Theorem checks equilibrium existence for combinations of agents with specific valuations by counting the intersection points of geometric objects. Applications include matching and coalition‐formation, and the “Product‐Mix Auction” introduced by the Bank of England in response to the financial crisis.

Understanding Preferences: “Demand Types”, and the Existence of Equilibrium With Indivisibilities