Arrow, Kenneth J.
Arrow, K. Then, copy and paste the text into your bibliography or works cited list. However, this criticism is not unique to the Arrow-Debreu model; it also applies to all general equilibrium models that are heavily dependent upon rigorous mathematical proofs.
Dierker, E. Lexington MA: McKenzie, L. In an extraordinary series of papers Arrow, 1951 ; Debreu, 1951; Arrow—Debreu, 1954 , two of the oldest and most important questions of neoclassical economics, the viability and efficiency of the market system, were shown to be susceptible to analysis in a model completely faithful to the neoclassical methodological premises of individual rationality, market clearing, and rational expectations, through arguments at least as elegant as any in economic theory, using the two techniques convexity and fixed point theory that are still, after thirty years, the most important mathematical devices in mathematical economics.
San Francisco: The Computation of Economic Equilibria. Equilibrium points in n-person games. Consumers have a set of well-defined preferences continuous, nonsatiated, and convex , and each consumer holds an initial endowment of the commodities, with a positive quantity of at least one commodity. Krozner, eds.
When commodities are specified to be conditional on various states of the world, the Arrow-Debreu model can easily incorporate expectation and uncertainty into the analysis. I show that the AD model fails even as an idealized model; it actually mistakes the logic of pure capitalism. Modern Language Association http: Advertisement Hide. Zur theorie der Gesellschaftsspiele.
Kuhn, H. Neumann, J.
Economics, Accounting, and Property Theory.