Problems in Equilibrium Theory

This is the first book to teach the basic methods of proof and problem solving in General Equilibrium Theory at graduate level. The problems cover the entire spectrum of difficulty: some are routine, while others require a good grasp of the material involved, and some are even challenging. In searching for the basic required techniques, students will discover a wealth of new material, and are encouraged to arrive at solutions different from the ones presented in the book. Complete solutions to two hundred problems are provided.

Contents: The Arrow-Debreu Model: Preferences and utility functions.- Maximal elements.- Demand functions.- Exchange economies.- Optimality in exchange economies.- Optimality and decentralization.- Production economies.- Riesz Spaces of Commodities and Prices: Partially ordered vector spaces.- Positive linear functionals.- Topological Riesz spaces.- Banach lattices.- Markets With Infinitely Many Commodities: The economic models.- Proper and myopic preferences.- Edgeworth equilibria and the core.- Walrasian equilibria and quasiequilibria.- Pareto optimality.- Examples of exchange economies.- Production With Infinitely Many Commodities: The model of a production economy.- Edgeworth equilibria and the core.- Walrasian equilibria and quasiequilibria.- Approximate supportability.- Properness and the welfare theorems.- The Overlapping Generations Model: The setting of the OLG model.- The OLG commodity-price duality.- Malinvaud optimality.- Existence of competitive equilibria.