SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Austrian Economics, a lens on everyday reality
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gpowell who wrote (318)11/18/2003 4:08:51 AM
From: Don Lloyd   of 445
 
gpowell,

My post did not mention how decision makers discover exchange opportunities. It does define what states might be points of equilibrium. We can only say now that under utility maximization assumptions, equilibrium will occur at points of intersecting indifference sets, subject to constraints of course.

Utility maximization only requires that no alternate state reachable by an exchange or combination of exchanges provides a larger utility. Continuity of utility is not required, even for a maximized state to exist.

There is no requirement for an equilibrium and intersecting indifference states to exist. They will not necessarily exist unless both goods and money are divisible. Unless half a car exists, I may be left with one half a car too much or too little, whether or not half a car can be useful.

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News