From Singularity Theory to Finiteness of Walrasian Equilibria
Sofia B.S.D. Castro
Universidade do Porto - Faculdade de Economia (FEP); Universidade do Porto - Centro de Matemática da Universidade do Porto (CMUP)
Sami F. Dakhlia
ESCE - International Business School
Peter B. Gothen
Universidade do Porto - Centro de Matemática da Universidade do Porto (CMUP); Departamento de Matemática Pura, Faculdade de Ciências da Universidade do Porto
July 25, 2010
The main result of this paper states that there exists a residual subset of the set of critical economies whose associated equilibria are finite in number. We also show that this subset does not contain any open set and therefore the result is the best possible for our choice of topology (compact-open topology). The proof rests on results and concepts from singularity theory.
Number of Pages in PDF File: 19
Keywords: Arrow-Debreu, Transversality, Exchange Economy, Critical Equilibria, Finite Singularity Type
JEL Classification: D50, C62, C02working papers series
Date posted: July 25, 2010 ; Last revised: January 20, 2013
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