New Equilibrium Concept Revolutionizes Market Dynamics and Price Rationing!
The article introduces a new concept called Quantity Constrained Equilibrium (QCE) in economic models. Unlike traditional models where prices adjust instantly, QCE considers a set of prices that can't change beyond certain limits. The researchers show that in this setup, there are specific equilibria where supply and demand are balanced without any restrictions. They prove that in certain cases, there are connected sets of QCEs, including scenarios where some commodities are not rationed at all. This new approach helps understand economic equilibria in more realistic settings, especially when dealing with different price constraints.