Article ID: | iaor1995584 |
Country: | Czech Republic |
Volume: | 2 |
Issue: | 1 |
Start Page Number: | 7 |
End Page Number: | 22 |
Publication Date: | Jan 1993 |
Journal: | Central European Journal of Operations Research |
Authors: | Vosvrda Miloslav S. |
This paper describes an attractor of equilibrium price in a pure exchange competitive model. First, the paper proves that Lyapunov exponents of Walras’s equilibrium transformation are nonpositive. Second, it proves that the probability of equilibrium price tends towards zero with an increasing number of market operations. The dynamics of Walrasian equilibria is then graphically demonstrated. The parameters of these equilibria are illustrated. Their largest Lyapunov exponent and a deterministic predictability long-run evolution are also introduced, respectively.