Back to Fundamentals: Abstract Competitive Equilibrium
نویسندگان
چکیده
We propose a new abstract definition of competitive equilibrium: a profile of alternatives and a public ordering (prestige, price or a social norm) such that each agent prefers his assigned alternative to all lower-ranked ones. The equilibrium operates in an abstract setting built upon a concept of convexity borrowed from Convex Geometry. The "magic" of linear equilibrium prices is put into perspective by establishing an analogy between linear functions in the standard convexity and "primitive orderings" in the abstract convexity. We apply the concept to a variety of convex economies and relate it to Pareto efficiency.
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Back to Fundamentals: Convex Geometry and Economic Equilibrium
We propose a notion of competitive equilibrium in an abstract setting called a Convex Economy using a concept of convexity borrowed from Convex Geometry. The "magic” of linear equilibrium prices is put into perspective in this abstract setting. The abstract notion of competitive equilibrium is applied to a variety of convex economies and versions of the first and second fundamental welfare theo...
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