New study reveals how fixed prices lead to unemployment equilibria.
The article introduces the concept of general equilibrium analysis, which looks at how firms, individuals, and markets interact. It covers topics like exchange, production, competition equilibrium, welfare economics, non-Walrasian equilibrium, and unemployment equilibria. The researchers explore different models and conditions to understand how economies reach stable states and make optimal choices. Key findings include the existence of stable equilibria, the impact of externalities on welfare, and the dynamics of disequilibrium in markets. The article also delves into mathematical concepts like demand functions, supply functions, and game theory to support the analysis.