Competitive equilibrium and auction theory together form a vital framework for understanding market efficiency and the strategic allocation of resources. Competitive equilibrium denotes a state where ...

A general equilibrium model of markets for commodities and assets is considered. We develop the notion of a price system that admits no arbitrage opportunity, and we demonstrate the fundamental role ...

The objective is to analyze, in a general way, problems of existence and determinacy of competitive equilibria when the markets structures are incomplete. The usual properties of demand functions ...

1. Textbook problems # 2, 5, 7, 8 from Chapter 8. Textbook problems # 9, 10, 11 from Chapter 9. 2. True/ False Questions. 1. Since long-run economic profits for a competitive firm are always zero, it ...