Competitive markets may fail to reach equilibrium, upending economic stability
The article discusses how some economic theories show that in certain situations, an equilibrium doesn't exist. This is important to understand because it challenges the idea that markets always reach a balance. The researchers look at examples where demand curves are not continuous, leading to no equilibrium. They also explore cases where a Pareto optimal allocation doesn't match a competitive equilibrium. This shows that in some scenarios, markets don't naturally find a balance point.