Existence of Equilibrium Prices: A Pedagogical Proof
Theoretical Economics
2018-09-25 v2
Abstract
Under the same assumptions made by Mas-Colell et al. (1995), I develop a short, simple, and complete proof of existence of equilibrium prices based on excess demand functions. The result is obtained by applying the Brouwer fixed point theorem to a trimmed simplex which does not contain prices equal to zero. The mathematical techniques are based on some results obtained in Neuefeind (1980) and Geanakoplos (2003).
Keywords
Cite
@article{arxiv.1808.03129,
title = {Existence of Equilibrium Prices: A Pedagogical Proof},
author = {Simone Tonin},
journal= {arXiv preprint arXiv:1808.03129},
year = {2018}
}