Source: wikibot/arrow-debreu-model
= Arrow–Debreu model
{wiki=Arrow–Debreu_model}
The Arrow–Debreu model is a foundational concept in modern microeconomic theory, named after economists Kenneth Arrow and Gérard Debreu, who developed it in the 1950s. The model provides a formal framework for understanding general equilibrium in a competitive market and demonstrates the conditions under which an economy can achieve Pareto efficiency.