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On the Uniqueness and Stability of the Equilibrium Price in Quasi-Linear Economies

2022/02/09 by Yuhki Hosoya, Hosoya, Yuhki
Economics, Econometrics and Finance · #91B50 #Economic theories and models #FOS: Economics and business #Theoretical Economics (econ.TH)

paper · pdf · doi:10.48550/arxiv.2202.04573

openalex publication_date 2022/02/09 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

In this paper, we show that if every consumer in an economy has a quasi-linear utility function, then the normalized equilibrium price is unique, and is locally stable with respect to the tâtonnement process. Our study can be seen as that extends the results in partial equilibrium theory to economies with more than two dimensional consumption space. Moreover, we discuss the surplus analysis in such economies.

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