Unveiling the hidden stability behind consumer choice theory revolutionizes economics!
The article discusses how the stability of consumer choice has been a key focus in economic theory. By examining the history of general equilibrium theory, researchers found that the concept of market stability helped to solidify the standard model of consumer choice. While the issue of consumer equilibrium stability was widely debated in the early 20th century, it faded from mainstream discussion between 1950 and 1980. The shift from individual consumer stability to market stability influenced the development of consumer choice theory, despite its negative impact on general equilibrium theory. This shift contributed to a period of stable consumer choice theory in the mid-20th century.