New model framework simplifies analysis of complex economic systems.
Equilibrium models with different types of people and uncertain overall conditions can be tricky to analyze. This paper introduces a new model that makes this analysis easier. When enough people join the economy in every possible situation, decisions and prices only depend on the overall conditions, not on individual differences. The first part of the paper proves that these equilibria exist and have a useful property for calculation. The second part applies this idea to models of how companies work and economies with incomplete markets.