2 General Equilibrium Theory
نویسنده
چکیده
Here we briefly review the general equilibrium theory, which is pretty traditional: preference and the concept of ordinal utility, demand and comparative statics, the definition of Arrow–Debreu equilibrium, Pareto efficiency and welfare theorems, welfare comparison and compensation principle, and incomplete asset markets. As they are standard, they are presented without proofs. For a comprehensive treatment of general equilibrium theory, see a standard textbook, such as Mas-Colell et al. [1] as well as reputable books, such as Debreu [2], Mas-Colell [3], Magill and Quinzii [4].
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