From Singularity Theory to Finiteness of Walrasian Equilibria
19 Pages Posted: 25 Jul 2010 Last revised: 20 Jan 2013
Date Written: 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.
Keywords: Arrow-Debreu, Transversality, Exchange Economy, Critical Equilibria, Finite Singularity Type
JEL Classification: D50, C62, C02
Suggested Citation: Suggested Citation