Introductory Examples

Abstract

For the purposes of this monograph, the imperfect model is best introduced with a few meaningful examples showing some of the weak points in the grandiose Walras construction. The first criticism is levelled at something that only a few years ago was generally accepted by scholars, namely: it is assumed that the auctioneer is endowed only with the task of controlling all prices in order to arrive at an equilibrium prices vector. On the contrary, as was asserted in §1.2, it is mandatory to attribute the auctioneer with the power of managing a trading center where all sellers deposit the products they chose to sell at the given equilibrium prices and take away, when possible — which is always in a Walrasian equilibrium — the quantities of goods they choose to buy.