Abstract:
The aim of this paper is to discuss the microfoundations project based on general equilibrium theory. For some authors the so called Sonnenschein-Mantel-Debreu (SMD) theorem undermines the possibility of microfoundations. How could the SMD theorem be interpreted? This paper makes use of Arida's concept of sociability (a weberian ideal type) to analyze general equilibrium theory and the SMD theorem. From this viewpoint, this paper examines the necessity of microfoundations and the issues of uniqueness and stability.
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