【武汉大学高等微观经济学】Lecture 13.pptVIP

Lecture 13: market as a process General Equilibrium theory II Content The “core” Uniqueness of equilibrium Stability of equilibrium Welfare The “core” Improve upon an allocation: a group of agents S is said to improve upon a given allocation x, if there is some allocation x’ such that: and If an allocation can be improved upon, then there is some group of agents can do better without market! The “core” Core of an economy: a feasible allocation x is in the core of the economy if it cannot be improved upon by any coalition. If x is in the core, x must be Par