Book contents
- Frontmatter
- Contents
- List of illustrations
- Introduction to the second edition
- Preface to the second edition
- Preface to the first edition
- Table of notation
- Table of assumptions
- A General equilibrium theory: Getting acquainted
- B Mathematics
- C An economy with bounded production technology and supply and demand functions
- D An economy with unbounded production technology and supply and demand functions
- E Welfare economics and the scope of markets
- F Bargaining and equilibrium: The core
- G An economy with supply and demand correspondences
- H Standing on the shoulders of giants
- Bibliography
- Index
A - General equilibrium theory: Getting acquainted
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- List of illustrations
- Introduction to the second edition
- Preface to the second edition
- Preface to the first edition
- Table of notation
- Table of assumptions
- A General equilibrium theory: Getting acquainted
- B Mathematics
- C An economy with bounded production technology and supply and demand functions
- D An economy with unbounded production technology and supply and demand functions
- E Welfare economics and the scope of markets
- F Bargaining and equilibrium: The core
- G An economy with supply and demand correspondences
- H Standing on the shoulders of giants
- Bibliography
- Index
Summary
Chapter 1 begins to describe the concept of general equilibrium (simultaneous price-guided clearing of several goods markets) and gives some of the colorful history of its development over the nineteenth and twentieth centuries. Chapters 2 and 3 introduce two elegantly simple and insightful models of general equilibrium that are simple enough to present in elementary classes and rich enough to provide insights in advanced treatments:
the Robinson Crusoe model, which emphasizes the interaction of the consumption and production sides of the economy and
the Edgeworth box, which investigates bargaining and equilibrium in the exchange of commodities among consumers.
Chapters 4 and 5 include additional demonstrations:
a characterization of the Pareto efficiency of general competitive equilibrium in a 2 × 2 × 2 model (2 households, 2 outputs, 2 inputs) and
a sample proof of existence of market general equilibrium, describing the structure of demand and supply functions needed to establish that prices can adjust so that markets can clear.
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- Information
- General Equilibrium TheoryAn Introduction, pp. 1 - 2Publisher: Cambridge University PressPrint publication year: 2011
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