Non-computability of competitive equilibrium

B-Tier
Journal: Economic Theory
Year: 1999
Volume: 14
Issue: 1
Pages: 1-27

Authors (2)

Kam-Chau Wong (not in RePEc) Marcel K. Richter

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a "computable counterexample" to the Arrow-Debreu competitive equilibrium existence theorem [2]. In particular, we find an exchange economy in which all components are (Turing) computable, but in which no competitive equilibrium is computable. This result can be interpreted as an impossibility result in both computability-bounded rationality (cf. Binmore [5], Richter and Wong [35]) and computational economics (cf. Scarf [39]). To prove the theorem, we establish a "computable counterexample" to Brouwer's Fixed Point Theorem (similar to Orevkov [32]) and a computable analogue of a characterization of excess demand functions (cf. Mas-Colell [26], Geanakoplos [16], Wong [50]).

Technical Details

RePEc Handle
repec:spr:joecth:v:14:y:1999:i:1:p:1-27
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29