New research reveals how perturbed utility impacts economic equilibrium in markets.
The article explores how perturbed utility functions affect the equilibrium in a market. They find that the equilibrium is when the average demand equals the average endowment. They show that there is always an economy with fixed utilities that has the same average demand as the one with perturbed utilities. The equilibrium is not efficient for everyone involved. In most cases, the equilibrium is stable and consistent.