The main contribution of the paper is to provide a weaker nonsatiation assumption than the one commonly used in the literature
to ensure the existence of competitive equilibrium. Our assumption
allows for satiation points in the set of individually feasible consump-
tions, provided that the consumer has satiation points available to
him outside this set. As a result, we show the concept of equilibrium
with dividends (See Aumann and Dreze (1986), Mas-Collel (1992)) is
pertinent only when the set of satiation points is included in the set of
individually feasible consumptions. Our economic motivation stems
from the fact that in decentralized markets, increasing the incomes of
consumers through dividends, if it is possible, is costly since it involves
the intervention of a social planner. Then, we show, in particular, how
in securities markets our weak nonsatiation assumption is satisfied by
Werner’s (1987) assumption.