Competitive Equilibrium Theory and Applications [Paperback]

This book provides a self-contained and accessible introduction to general equilibrium theory with an emphasis on applications.A broad introduction to competitive equilibrium analysis with an emphasis on concrete applications. This text includes the existence of equilibrium, models with a continuum of players, economies with individual commodities, computation of equilibrium and infinite dimensional space.A broad introduction to competitive equilibrium analysis with an emphasis on concrete applications. This text includes the existence of equilibrium, models with a continuum of players, economies with individual commodities, computation of equilibrium and infinite dimensional space.The development of general equilibrium theory represents one of the greatest advances in economic analysis in the latter half of the twentieth century. This book, intended for advanced undergraduates and graduate students, provides a broad introduction to competitive equilibrium analysis with an emphasis on concrete applications. The coverage is exceptionally broad, including existence of equilibrium, models with a continuum of players, economies with individual commodities, computation of equilibrium, and infinite dimensional space. Well-designed and interesting applications help to make potentially abstract material more accessible.List of illustrations; Preface; Acknowledgments; Part I. Exchange: 1. Mathematical prerequisites; 2. Walrasian equilibrium; 3. Pareto optimality and the core; 4. A numerical example; 5. Commodities and prices; 6. Summary; Part II. Production: 7. Geometry of vector spaces; 8. CRS production; 9. Alternative models of production; 10. Public goods and joint supply; 11. Summary; Part III. Aumanns Model: 12. Applying Aumann's model; 13. Dealing with nonconvexity; 14. Measure and integration; 15. Hedonic theory and local public goods; 16. Summary; Part IV. Topology: 17. Introduction to topology; 18. Topologies on vector spaces; 19. Summary; Part V. Best Response:lÃ%