# Questions tagged [competitive-equilibrium]

The study of equilibrium when individual agents have no power to influence market-level variables like prices or quantities.

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### Competitive equilibrium: how to define histories on continuous space?

In the usual setup for the competitive equilibrium we have the agent solve: $$\max_{\{c_i(h^t)\}} \sum_{t=0}^\infty \sum_{h^t} \beta ^t u(c(h^t)) \pi(h^t)$$ subject to constraints, where $h^t$ ...
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### Competitive Equilibrium how to determine subject to functions

Consider a 1-commodity, 2-consumers, 2-periods economy with S = 2, J = 1. The asset pays one unit (of the commodity) in state 1 and 2 units in state 2. q denotes the price of the asset at time 0. The ...
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### Exchange economy with two agents, what's the competitive equilibrium?

I'm currently doing this assignment but I'm keep getting stuck by this question. I put the Lagrange function for both agents and get the MRS / Price ratio but what should I do from there?
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### How to find the Walrasian equilibrium for non monotonic utility functions?

I just say Amit's comment on this question: The second welfare theorem without monotonicity so I got curious and tried to find both the contract curve for that particular problem, and the Walrasian ...
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### Who is losing in an arbitrage?

When some entity takes advantage of an arbitrage opportunity, who is losing money? For example, when there are price differences across cryptocurrency exchanges and someone exploits an arbitrage ...
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### why is market clearing price assumed in cournot model with homogenous products

In the cornout model two firms choose the amount of a product they wish to produce. It is assumed that the price that results is the market clearing price for the total supply. Is there a ...