A Non-Walrasian Model of a Market Economy.
HARVARD UNIV CAMBRIDGE MASS
Pagination or Media Count:
In the Walrasian model of a market economy, every agent is assumed to be a price-taker and hence there is no agent who can change prices. In the same model, it is also assumed that if the excess demand for some commodity is positive resp. negative the price of the commodity will rise resp. fall unless the price is already zero. The latter assumption would require the presence of an agent to be called an auctioneer if the model were to be regarded as self-contained. This paper presents a tentative non-Walrasian formulation of a pure-exchange market economy in which not every agent is assumed to be a price-taker and no auctioneer is assumed to be present. An equilibrium concept is proposed and its static properties are discussed.
- Economics and Cost Analysis