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Questions tagged [walrasian]

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Walras's law in a Fisher market

Walras's law is stated for an exchange market: each agent comes to the market with a certain endowment of each commodity, a price-vector is determined, and the demand of each agent is the best bundle ...
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General Equilibrium Involving Production

I need a little conceptual clarification. For a standard $N*K*M$ general equilibrium model, would an allocation, say, $y^k$ be Pareto Optimal if it does not solve $max(py^k)$? I understand that the ...
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Sketching Walrasian Equilibrium

I need to: Sketch a situation where preferences are neither convex nor strictly montonic and there is no Walrasian Equilibrium Sketch a situation where preferences are neither convex nor strictly ...
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Blocking Coalitions

For $n$ individuals, can a blocking coalition only be formed by at least $n/2$ individuals? For example, if there are 6 individuals, can less than 3 individuals form blocking coalitions?
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Continuity in $p$

I am studying about the Walrasian Equilibrium and I need to understand what "${x}^i$$(p,{p.e}^i)$ is continuous in $p$" means. I understand that ${x}^i$$(p)$ are not continuous over $\mathbb{R}^M_+$, ...
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What is the difference between solving for utility maximization separately or aggregately?

I derived the Walrasian equilibrium for an economy of two consumers with their respective utility functions (u1, u2) and initial endowments but later on I am asked to maximize (u1+u2). Does anyone ...
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What is excess demand/ excess supply?

I've been reading up on Walras' Law and thought I understood it pretty well. However one of my friends asked me point blank what is an example of excess demand or excess supply is and I had some ...
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MRS in Walrasian equilibrium price expression?

I have the utility function $U^A=\alpha ln(x^A)+\beta ln(y^A)$ for consumer $A$ and $U^B=\gamma ln(x^B)+\phi ln(y^B)$ for consumer $B$. They are endowed with $\omega^h_x$ and $\omega^h_y$ of $x$ and $...
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General Equilibrium allocation holding fixed a consumer's utility

I'm having some issues with solving this general equilibrium exercise. The way I started off is by assuming that since consumer 2's utility is fixed, he will have a fixed utility function. Then ...
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Pareto optimal and Walrasian equilibrium [closed]

There are 100 units of good 1 and good 2 in a economy. Consumer 1 and consumer 2 have 50 units of each good. Consumer 1 only wants good 1 whereas consumer 2 only wants good 2. Note: Neither of these ...
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1answer
651 views

Finding a walrasian demand function

If I have a sum utility function like this $U(y) = \sum_{j=1}^J u(y_j)$ where $u$ is convex. Is there then a way to find walrasian demand for such a function without using calculus or do you need to ...
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How does Brouwer's fixed point theorem relate to Walrasian equilibrium?

I am trying to understand Walrasian equilibrium and its connection to fixed points, especially how we can apply Brouwer’s fixed point theorem to the notion of Walrasian equilibrium. I understand the ...
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1answer
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Whether the demand in the panels satisfies the weak axiom

The Walrasian demand function $x(p,w)$ satisfies the weak axiom of revealed preference if the following property holds for any two price wealth situations $(p,w)$ and $(p',w')$: If $p•x(p',w')\le w$ ...
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Doubt regarding Walrasian equilibrium with complements for both agents

There are two goods $1,2$ and two agents $ 1,2 $. Both have the utility function $ u_{i}=\min({x_{1i},x_{2i}}) $ for agent $i$ .The endowments are $(1,3)$ and $(3,1)$ for agent $1$ and $2$ ...
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1answer
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Perfect Complements - Walrasian Equilibrium

For a homework , I struggled to solve the following question but couldn't go further: endowment of person 1 = (30,0) endowment of person 2 = (0,20) utility ...
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Show that $x(p,w)=w\cdot x(p,1)$ with homothetic preferences

Someone gave me a proof of this, but I am not sure if it is correct. Let $B(p,w) = \{x: p\cdot x \leq w\}$ (the budget set). Then: \begin{align} x(p,w) &= \arg \max_{x\in B(p,w)} u(x)\\ &=\...
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Becker Social Pricing and Lack of Smooth Demand

I was reading an article on Becker Social Pricing, where your demand for a good depends on other people's demand for the good. So basically this paper is meant to be a primer into explaining why some ...
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Convexity of Walrasian Demand

A follow up to my previous question: Given $u(x) = (x_1-b_1)^\alpha (x_2-b_2)^\beta(x_3-b_3)^\gamma$ and ending up with from a maximization that $$x(p,w) = (b_1, b_2, b_3) + (w - (b \cdot p))\...