Competitive equilibrium and auction theory together form a vital framework for understanding market efficiency and the strategic allocation of resources. Competitive equilibrium denotes a state where ...

A general equilibrium model of markets for commodities and assets is considered. We develop the notion of a price system that admits no arbitrage opportunity, and we demonstrate the fundamental role ...

The objective is to analyze, in a general way, problems of existence and determinacy of competitive equilibria when the markets structures are incomplete. The usual properties of demand functions ...

1. Textbook problems # 2, 5, 7, 8 from Chapter 8. Textbook problems # 9, 10, 11 from Chapter 9. 2. True/ False Questions. 1. Since long-run economic profits for a competitive firm are always zero, it ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...