This short paper shows in an example of strategic market game that the CournotNash equilibrium converges to the Walras equilibrium, even in the case of an exchange economy with infinitely many commodities.

After a general philosophical introduction, this chapter discusses the meaning and nature of a “pure” science of economics, both as an analytical and a classificatory conception. This discussion leads to the nature of abstraction, idealization, ideal objects, and the production of abstract mathematical theories in economics, which gives rise to Walras’ problem, namely that of “returning to real...

We present a model in which unemployed workers simultaneously sample n potential employers. By varying n, we nest search and Walrasian-type models of the labor market. We show that low values of n yield typical search equilibria: the wages are dispersed below the marginal productivity of labor. Interestingly, as n exceeds a relatively small threshold, the Walrasian-type equilibrium emerges with...