Document Type
Discussion Paper
Publication Date
8-1-1996
CFDP Number
1131R3
CFDP Revision Date
2002-02-01
CFDP Pages
20
Abstract
The existence of Nash and Walras equilibrium is proved via Brouwer’s Fixed Point Theorem, without recourse to Kakutani’s Fixed Point Theorem for correspondences. The domain of the Walras fixed point map is confined to the price simplex, even when there is production and weakly quasi-convex preferences. The key idea is to replace optimization with “satisficing improvement,” i.e., to replace the Maximum Principle with the “Satisficing Principle.”
Recommended Citation
Geanakoplos, John, "Nash and Walras Equilibrium via Brouwer" (1996). Cowles Foundation Discussion Papers. 1379.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1379