Nash and Walras Equilibrium

19 Pages Posted: 16 Jul 2001

See all articles by John Geanakoplos

John Geanakoplos

Yale University; Santa Fe Institute

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

Geanakoplos, John D, Nash and Walras Equilibrium (June 2001). Available at SSRN: https://ssrn.com/abstract=275511

John D Geanakoplos (Contact Author)

Yale University ( email )

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HOME PAGE: http://https://economics.yale.edu/people/faculty/john-geanakoplos

Santa Fe Institute ( email )

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Santa Fe, NM 87501
United States

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