flâneur — a map of the web's best reading

Competitive equilibrium

en.wikipedia.org · 4,082 words · saved by 1 readers

Competitive equilibrium (also called: Walrasian equilibrium) is a concept of economic equilibrium introduced by Kenneth Arrow and Gérard Debreu in 1951 appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis. It relies crucially on the assumption of a competitive environment where each trader decides upon a quantity that is so small compared to the total quantity traded in the market that their individual transactions have no influence on the prices. Competitive markets are an ideal standard by which other market structures are evaluated.

Competitive equilibrium - Wikipedia Jump to content From Wikipedia, the free encyclopedia Economic equilibrium concept Competitive equilibrium (also called: Walrasian equilibrium ) is a concept of economic equilibrium , introduced by Kenneth Arrow and Gérard Debreu in 1951, [ 1 ] appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis. It relies crucially on the assumption of a competitive environment where each trader decides upon a quantity that is so small compared to the total quantity traded i

Explore this link on the map →

related reading