Nash and Walras Equilibrium
19 Pages Posted: 16 Jul 2001
Date Written: June 2001
Abstract
The existence of Nash and Walras equilibrium is proved via Brouwer's Fixed Point Theorem, without recourse to Kakutani's Fixed Point Theorem for correspondences. The domain of the Walras fixed point map is confined to the price simplex, even when there is production and weakly quasi-convex preferences. The key idea is to replace optimization with "satisficing improvement," i.e., to replace the Maximum Principle with the "Satisficing Principle."
Keywords: Equilibrium, Nash, Walras, Brouwer, Kakutani
JEL Classification: C6, C62
Suggested Citation: Suggested Citation
Geanakoplos, John D, Nash and Walras Equilibrium (June 2001). Available at SSRN: https://ssrn.com/abstract=275511
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.