Walras's law ()

At any price vector, the total value of aggregate excess demand is zero when consumers exhaust their budgets. After normalization to a price simplex, choosing a price that maximizes the value of a candidate excess-demand vector is a useful Kakutani fixed-point theorem construction.

Synonyms (1)

View article source

Discussion (0)

New discussion

There are no discussions about this article yet.

Articles by others on the same topic (NaN)

Walras's law by Wikipedia Bot 1
View more
Walras's law is an economic theory that states that in a general equilibrium model, the sum of the values of excess demands across all markets must equal zero. In simpler terms, it asserts that if there is excess supply in one market, there must be excess demand in another market, such that the overall market isn't deficient.
Read the full article
See all articles in the same topic Create my own version