Jump to ContentJump to Main Navigation
Equilibrium Models in EconomicsPurposes and Critical Limitations$
Users without a subscription are not able to see the full content.

Lawrence A. Boland

Print publication date: 2017

Print ISBN-13: 9780190274320

Published to Oxford Scholarship Online: May 2017

DOI: 10.1093/acprof:oso/9780190274320.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 22 January 2020

Equilibrium attainment vs. equilibrium necessities

Equilibrium attainment vs. equilibrium necessities

Chapter:
(p.25) Chapter 2 Equilibrium attainment vs. equilibrium necessities
Source:
Equilibrium Models in Economics
Author(s):

Lawrence A. Boland

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780190274320.003.0003

This chapter is about Kenneth Arrow’s 1959 article about price adjustment. This chapter uses that article to explain the logical requirements of any equilibrium model that purports to explain, say, equilibrium prices. Arrow explains why just assuming maximization on the part of both demanders and supplier in a market is not enough to assure equilibrium attainment. Arrow rejects the usual textbooks’ addition of an additional assumption that the markets are already at equilibrium. He instead argues that explicitly assumptions about the dynamics of equilibrium attainment must be included in any equilibrium model. The chapter thus discusses price adjustment in formal models; equilibrium attainment as an explicit process. It recognizes that Arrow equilibrium attainment also need something like imperfect competition to deal with any disequilibrium state that would necessarily exist prior to equilibrium attainment.

Keywords:   equilibrium price, equilibrium attainment, imperfect competition, price adjustment, Kenneth Arrow

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .