Econometrica: Jul, 1954, Volume 22, Issue 3

Existence of an Equilibrium for a Competitive Economy

https://doi.org/0012-9682(195407)22:3<265:EOAEFA>2.0.CO;2-B
p. 265-290

Gerard Debreu, Kenneth J. Arrow

A. Wald has presented a model of production and a model of exchange and proofs of the existence of an equilibrium for each of them. Here proofs of the existence of an equilibrium are given for an integrated model of production, exchange and consumption. In addition the assumptions made on the technologies of producers and the tastes of consumers are significantly weaker than Wald's. Finally a simplification of the structure of the proofs has been made possible through use of the concept of an abstract economy, a generalization of that of a game.