General Equilibrium price taking(伦敦经济学院高级微观讲义).pdf

Microeconomics General Equilibrium: price taking Some puzzles in competitive equilibrium analysis  So far weve focused on competitive equilibrium  So far weve focused on competitive equilibrium analysis. But why? analysis. But why?  Why concentrate on equilibrium?  Why concentrate on equilibrium?  Why assume competitive behaviour?  Why assume competitive behaviour?  Lets start by having another look at the  Lets start by having another look at the exchange economy. exchange economy.  Well redraw the Edgeworth box  Well redraw the Edgeworth box Lets look at the inner workings... b b a x O 1 x 2 D D E E a b x 1 x 2 O a x b O b 1 a x D 2 E a O x a