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General Equilibrium with Price-Making Firms

  • Thomas Marschak
  • Reinhard Selten

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 91)

Table of contents

  1. Front Matter
    Pages I-XI
  2. Thomas Marschak, Reinhard Selten
    Pages 1-11
  3. Thomas Marschak, Reinhard Selten
    Pages 241-244
  4. Back Matter
    Pages 245-247

About this book

Introduction

Motivation. That elegant fiction the competitive equilibrium seems still to dominate the frontiers of theoretical microeconomics. We may think of it in a general way as a state of affairs wherein economic agents, responding "rationally" to annoWlced prices, make choices which are consistent and feasible. The prices may also be described as "taken": for one reason or another the agents who respond to them consider them as given. The existence of such a state, its optimality, its robustness against free bargaining among agents when there are many of them, its Wliqueness, its stability when price displacements evoke specified adjustments--all these issues have been studied, and continue to be studied in a variety of settings. Slowly the equilibrium investigated begins to incorporate public goods, externalities of certain kinds, differences in agents' information, and infinitely many time periods. The appeal of such results need not be belabored: the equilibrium studied may sustain an optimal resource allocation, and when it does it sus­ tains it in a manner that appears to be informationally efficient and to accord well with individual incentives. Therefore it is important to extend the circumstances under which an equilibrium exists, under which it sustains opti­ mality, and under which it survives displacements as well as free bargaining among agents.

Keywords

agents bargaining economics economy equilibrium general equilibrium information microeconomics production public goods science and technology sets stability value-at-risk

Authors and affiliations

  • Thomas Marschak
    • 1
  • Reinhard Selten
    • 2
  1. 1.School of Business AdministrationUniversity of CaliforniaBerkeleyUSA
  2. 2.Institut für Mathematische WirtschaftsforschungUniversität BielefeldRheda/SchloßGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-65802-0
  • Copyright Information Springer-Verlag Berlin Heidelberg 1974
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-06624-8
  • Online ISBN 978-3-642-65802-0
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site
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