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Economic Theory
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Economic Theory
Article . 2007 . Peer-reviewed
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Article . 2008
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On the fundamental theorems of general equilibrium

Authors: Eric Maskin; Kevin W.S. Roberts;

On the fundamental theorems of general equilibrium

Abstract

Given an economy (consumers, preferences, production sets, endowments), defining a generalized competitive mechanism (assigning under conditions to each consumer an income) and using a weakening of Walras' law, then an application of Kakutani's fixed point theorem delivers an equilibrium. From this connections between competitive equilibria and Pareto efficient allocations are proved (first welfare theorem) and also a decentralization theorem (second welfare theorem). Some interesting remarks are added, so for instance, that convexity in decentralization theorems is needed only to show, that an equilibrium exists, it is not required to show, that the equilibrium occurs at the Pareto efficient allocation.

Country
United Kingdom
Related Organizations
Keywords

Fixed-point theorems, Walras law, Truncated economy, Equilibrium, Kakutani fixed point theorem, General equilibrium theory, Special types of economic markets (including Cournot, Bertrand), Pareto optimum

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
15
Top 10%
Top 10%
Average
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bronze
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