Equilibrium selection under changes in endowments: a geometric approach

DOI10.1016/J.JMATECO.2023.102890MaRDI QIDQ6051065zbMATH OpenOpenAlexFDO

Authors Andrea Loi, Stefano Matta, Daria Uccheddu

Publication date 19 September 2023

Published in Journal of Mathematical Economics (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://arxiv.org/abs/2208.10860

zbMATH Keywords

curvatureequilibrium manifoldequilibrium selectionuniqueness of equilibrium

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24)

Abstract: In this paper we propose a geometric approach to the selection of the equi- librium price. After a perturbation of the parameters, the new price is selected thorough the composition of two maps: the projection on the linearization of the equilibrium man- ifold, a method that underlies econometric modeling, and the exponential map, that associates a tangent vector with a geodesic on the manifold. As a corollary of our main result, we prove the equivalence between zero curvature and uniqueness of equilibrium in the case of an arbitrary number of goods and two consumers, thus extending the previous result by [6].

Recommendations

• An approach to equilibrium selection
• A geometric approach to continuous expected utility
• On the geometry of Nash and correlated equilibria with cumulative prospect theoretic preferences
• Equilibrium selection in static and dynamic entry games
• Continuous Markov equilibria with quasi-geometric discounting
• Selection of a desirable equilibrium by subjective motive distributions
• Equilibrium selection and the dynamic evolution of preferences
• Efficient and equilibrium allocations with stochastic differential utility
• A geometric view of welfare gains with non-instantaneous adjustment
• Equilibrium welfare and government policy with quasi-geometric discounting

Cites work

• Catastrophes minimization on the equilibrium manifold
• Curvature and uniqueness of equilibrium
• Economies with a Finite Set of Equilibria
• scientific article; zbMATH DE number 52737 (Why is no real title available?)
• scientific article; zbMATH DE number 192915 (Why is no real title available?)
• Minimal entropy and uniqueness of price equilibria in a pure exchange economy
• Some consequences of the unknottedness of the Walras correspondence
• Some results on uniqueness and on stability of equilibrium in general equilibrium theory

Cited in

(5)

• The geometry of finite equilibrium datasets
• A geometric view of welfare gains with non-instantaneous adjustment
• scientific article; zbMATH DE number 2072565 (Why is no real title available?)
• Recent advances on uniqueness of competitive equilibrium
• Curvature and uniqueness of equilibrium

Describes a project that uses

Uses Software

• SageMath

This page was built for publication: Equilibrium selection under changes in endowments: a geometric approach

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q6051065)