The existence of equilibrium in a simple exchange model

Maćkowiak, Piotr (2013): The existence of equilibrium in a simple exchange model. Published in: Fixed Point Theory and Applications No. 2013:104 doi:10.1186/1687-1812-2013-104 (April 2013)

Abstract

This paper gives a new proof of the existence of equilibrium in a simple model of an exchange economy. We first formulate and prove a simple combinatorial lemma and then we use it to prove the existence of equilibrium. The combinatorial lemma allows us to derive an algorithm for the computation of equilibria. Though the existence theorem is formulated for functions defined on open simplices it is equivalent to the Brouwer fixed point theorem.

• Item Type: MPRA Paper
• Language: English
• Keywords: Simple exchange model, equilibrium existence, zero of a function, fixed point, computation of equilibria, simplicial methods
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies

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