Sonnenschein-Mantel-Debreu Theorem: Aggregate Demand Limits
Sonnenschein-Mantel-Debreu theorem analysis shows why rational individual demand does not guarantee stable, unique, or well-behaved aggregate demand.
General Equilibrium
Stability of General Equilibrium: Price Convergence
Stability of general equilibrium explains when price adjustment converges toward market clearing and when cross-market feedback prevents convergence.
Existence of Competitive Equilibrium: Fixed Point Logic
Existence of competitive equilibrium explains how fixed point logic proves that market-clearing prices can exist under suitable general equilibrium assumptions.
Excess Demand Function: Market Pressure
Excess demand function analysis measures shortage, surplus, and market-clearing pressure across connected markets in general equilibrium.
Tatonnement Process: Price Adjustment Toward Equilibrium
Tatonnement process analysis explains how prices adjust to excess demand and why equilibrium stability requires more than market-clearing existence.
Walras law: Market Excess Demands Balance
Walras law shows why the value of excess demand across all markets must balance when agents obey budget constraints.
Walrasian Equilibrium Edgeworth Box
A Walrasian equilibrium Edgeworth box shows how one relative price coordinates two traders: a budget line pivoting through the endowment...
Core of an Exchange Economy: Blocking Coalitions
core of an exchange economy analysis explains how blocking coalitions restrict feasible trades and why competitive markets shrink the stable...
Contract Curve: Pareto Efficient Allocations
contract curve analysis derives Pareto-efficient allocations in an Edgeworth box by equating two agents’ marginal rates of substitution at tangency...