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I was going through the Shapley-Folkman-Starr Lemma (https://simons.berkeley.edu/sites/default/files/docs/3605/simons2.pdf) and I came across the term "endowment" of an agent.

My assumption is that it represents a (sub)set of the agent's preferred bundles. Could someone please clarify this term?

RobPratt
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user12632521
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1 Answers1

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Endowment is a term from economics. It is the (initial) amount of goods (or factors depending on the type of agent) an agent possesses. In models, this is an exogenous value (constant). Usually, there are different types of goods, so for each agent this is a vector. Of course, in many models, this agent starts trading (or producing) with this.

Erwin Kalvelagen
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  • I studied Economics in college, so I am familiar with that term, as described in this answer. Among the general college student population, that term was more widely known in more specific contexts, such as the value of a school's assets, and when applied to coeds, to a specifics type of asset they're endowed with. – Mark L. Stone Oct 24 '22 at 19:03