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Nash And Walras Equilibrium Via Brouwer, John Geanakoplos
Nash And Walras Equilibrium Via Brouwer, John Geanakoplos
Cowles Foundation Discussion Papers
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.”
Nash And Walras Equilibrium Via Brouwer, John Geanakoplos
Nash And Walras Equilibrium Via Brouwer, John Geanakoplos
Cowles Foundation Discussion Papers
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.”