Loi, Andrea and Matta, Stefano (2021): Minimal entropy and uniqueness of price equilibria in a pure exchange economy.
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Abstract
We introduce uncertainty into a pure exchange economy and establish a connection between Shannon’s differential entropy and uniqueness of price equilibria. The following conjecture is proposed under the assumption of a uniform probability distribution: entropy is minimal if and only if the price is unique for every economy. We show the validity of this conjecture for an arbitrary number of goods and two consumers and, under certain conditions, for an arbitrary number of consumers and two goods.
Item Type:  MPRA Paper 

Original Title:  Minimal entropy and uniqueness of price equilibria in a pure exchange economy 
Language:  English 
Keywords:  Entropy, uniqueness of equilibrium, price multiplicity, equilibrium manifold, minimal submanifold. 
Subjects:  D  Microeconomics > D5  General Equilibrium and Disequilibrium > D50  General D  Microeconomics > D5  General Equilibrium and Disequilibrium > D51  Exchange and Production Economies D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D80  General 
Item ID:  106178 
Depositing User:  Stefano Matta 
Date Deposited:  19 Feb 2021 06:33 
Last Modified:  19 Feb 2021 10:53 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/106178 
Available Versions of this Item

Minimality and uniqueness of equilibrium. (deposited 20 Jan 2020 15:14)
 Minimal entropy and uniqueness of price equilibria in a pure exchange economy. (deposited 19 Feb 2021 06:33) [Currently Displayed]