Typical properties of large random economies with linear activities

A. De Martino, M. Marsili and I. P\'erez Castillo

Papers from arXiv.org

Abstract: We study the competitive equilibrium of large random economies with linear activities using methods of statistical mechanics. We focus on economies with $C$ commodities, $N$ firms, each running a randomly drawn linear technology, and one consumer. We derive, in the limit $N,C\to\infty$ with $n=N/C$ fixed, a complete description of the statistical properties of typical equilibria. We find two regimes, which in the limit of efficient technologies are separated by a phase transition, and argue that endogenous technological change drives the economy close to the critical point.

Date: 2003-09, Revised 2004-01
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:cond-mat/0309533

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