Open AccessProfits in (Partial) Equilibrium and (General) Disequilibrium
Author(s) -
SeongHoon Kim,
Seongman Moon
Publication year - 2012
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.2142417
Subject(s) - disequilibrium , download , partial equilibrium , computer science , general equilibrium theory , economics , world wide web , microeconomics , medicine , ophthalmology
In a many-sector production economy where each sector's output is used as input for every sector, a general equilibrium implies zero profit for everyone, whereas one market in excess demand implies positive profits for all others in their partial equilibrium. If more than one market is stuck in excess demand, every market allows positive profits.
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