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- W2104773485 abstract "This paper investigates the mappings used in the proof of existence of a general competitive equilibrium in Arrow-Debreu models, the single most important result of neoclassical theory in the last fifty years. It is claimed that these mappings represent the law of supply and demand. The paper examines the three most important mappings used to demonstrate the existence of a general competitive equilibrium. We show the behaviour of these mappings contradicts the law of supply and demand in the general n-commodity case. From a technical standpoint, this stems from the price-normalization procedure required to ensure mathematical properties needed to apply a fixed point theorem. Thus, our findings show that the existence results are mathematical theorems devoid of any economic sense. As a consequence, this paper implies a direct criticism of dominant economic theory from two points of view. The first one being the theoretical soundness and rigor of neoclassical theory. The second criticism is more general, as it concerns the relationship between mathematics and economic theory." @default.
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- W2104773485 date "2001-01-01" @default.
- W2104773485 modified "2023-09-27" @default.
- W2104773485 title "The law of supply and demand in the proof of existence of general competitive equilibrium" @default.
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- W2104773485 doi "https://doi.org/10.4324/9780203799963-8" @default.
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