Walrasian equilibrium prices have a remarkable property: they allow each buyer to purchase a bundle of goods that she finds the most desirable, while guaranteeing that the induced allocation over all buyers will globally maximize social welfare. ...
A Walrasian equilibrium outcome has a remarkable property: the induced allocation maximizes social welfare while each buyer receives a bundle that maximizes her individual surplus at the given prices. There are, however, two caveats. First, minimal ...
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