Abstract
This article discusses work on the determinacy and indeterminacy of equilibria in models of competitive markets. Determinacy typically refers to situations in which equilibria are finite in number, and local comparative statics can be precisely described. The article describes basic results on generic determinacy for exchange economies and the general underlying principles, together with various applications and extensions including incomplete financial markets and markets with infinitely many commodities.
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Shannon, C. (2018). Determinacy and Indeterminacy of Equilibria. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2038
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2038
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