Consumption based other-regarding preferences in general equilibrium: existence

Following the works of Kranich and Mercier Ythier, this paper addresses the existence problem in a general equilibrium model featuring otherregarding preferences and allowing for transfers of goods between individuals. Our main contribution is to identify and discuss several economic and mathematical issues present in the model proposed in [12] and to provide a consistent proof of the existence of equilibrium. Specifically, we define an auxiliary concept of equilibrium, construct a generalized game associated with the economy under consideration, demonstrate the existence of an equilibrium in this game - shown to be an auxiliary equilibrium for the economy - and finally prove that these results imply the existence of the originally defined economic equilibrium.