The Walrasian Output Beats the Market

Antonio Morales () and Gonzalo Fernandez-de-Cordoba

No 2010-08, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: We show that for any market-clearing price, average profits in a symmetric industry cannot exceed the individual profits from the Walrasian output. This immediately implies that a firm itself can guarantee to beat the market by producing the Walrasian output. This property clarifies and generalizes the conditions used in the literature to prove the success of Walrasian behavior from an evolutionary perspective.

Keywords: Walrasian equilibrium; Evolutionary foundation (search for similar items in EconPapers)
JEL-codes: C73 D43 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2010-07
New Economics Papers: this item is included in nep-gth
References: Add references at CitEc
Citations:

Downloads: (external link)
https://theeconomics.uma.es/malagawpseries/Papers/METCwp2010-8.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: The Walrasian output beats the market (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2010-8

Access Statistics for this paper

More papers in Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center Contact information at EDIRC.
Bibliographic data for series maintained by Ascension Andina ().