Abstract
The core of an economy is the set of all economic outcomes that cannot be ‘blocked’ by any group of individuals; it is an institution-free concept. A Walrasian equilibrium is an economic outcome based on the institution of market-clearing via prices: each individual consumes his or her demand, taking prices as given, and the demand for each good equals the supply of that good. Core convergence asserts that, for sufficiently large economies, every core allocation approximately satisfies the definition of Walrasian equilibrium; it is an important test of the price-taking assumption inherent in the definition of Walrasian equilibrium.
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Anderson, R.M. (2018). Core Convergence. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2706
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2706
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