Imperfect General Equilibrium: The Economy as an Evolutionary Process: Individualistic, Discrete, Deterministic (Lecture Notes in Economics and Mathematical Systems)

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9783540581024: Imperfect General Equilibrium: The Economy as an Evolutionary Process: Individualistic, Discrete, Deterministic (Lecture Notes in Economics and Mathematical Systems)
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Economic theory of the last fifty years has been dominated by the paradigm of General Equilibrium Theory, based on the scientific work of Walras-Pareto-Cassel-Wald-Hicks-Arrow-De­ breu-McKenzie. Some of its grounding assumptions are: all prices are fully flexible; an auctioneer appropriately manipulates all prices according to the law of supply and demand; every con­ sumer has only one budget constraint; all agents are perfectly informed; no actions are taken by agents before a vector of prices has been found such that all markets clear. Indeed, when all markets clear every agent can implement her/his chosen (opti­ mal) action and nobody is urged to change his/her decisions. Under these assumptions it is generally said that in a (one pe­ riod, competitive) general equilibrium model there is no place for money. The present monograph takes general equilibrium as the ba­ sis on which to build the model presented. But its first aim is to completely dispense with the Walrasian auctioneer by giving firms the task of choosing their output price~ period after period.

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Text: English (translation)
Original Language: Italian

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9780387581026: Imperfect General Equilibrium: The Economy As an Evolutionary Process : Individualistic, Discrete, Deterministic (Lecture Notes in Economics & Mathematical Systems)

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