DebreuArrowMackenzie

DebreuArrowMackenzie is a concept in economics that combines the theories of three prominent economists: Gérard Debreu, Kenneth Arrow, and John Mackenzie. It is primarily used in the analysis of general equilibrium theory, which studies the interactions between different markets and the allocation of resources in an economy.

The DebreuArrowMackenzie theorem is a fundamental result in general equilibrium theory. It states that if an economy is described by a set of preferences that are continuous and convex, and if the production possibilities are convex, then there exists a competitive equilibrium. This means that there is a price system and an allocation of goods that satisfies all consumers' preferences and the production constraints simultaneously.

The theorem is significant because it provides a rigorous foundation for the existence of competitive equilibria in economies with a large number of agents and goods. It is also a cornerstone of the general equilibrium theory, which is used to analyze various economic phenomena, such as market failures, externalities, and public goods.

The DebreuArrowMackenzie theorem has been influential in shaping modern economic theory. It has inspired numerous extensions and applications, such as the analysis of economies with incomplete markets, economies with asymmetric information, and economies with strategic behavior. The theorem has also been used to study the properties of equilibrium outcomes, such as their stability, efficiency, and fairness.

In summary, DebreuArrowMackenzie is a crucial concept in economics that combines the theories of Debreu, Arrow, and Mackenzie. It provides a rigorous foundation for the existence of competitive equilibria and has been influential in shaping modern economic theory. The theorem has numerous extensions and applications, and it has been used to study various economic phenomena and properties of equilibrium outcomes.