Walrasiskt

Walrasiskt is a term used in economics to describe a theoretical general equilibrium model developed by the French economist Léon Walras. This model aims to explain how prices and quantities of goods and services are determined simultaneously in a competitive market economy. The core idea behind the Walrasian model is that all markets are interconnected. Changes in one market, such as an increase in the price of a raw material, will inevitably affect prices and quantities in other markets through a chain reaction.

The Walrasian system assumes perfect competition, where numerous buyers and sellers have no individual influence over prices. It also posits that consumers aim to maximize their utility and producers aim to maximize their profits, given their budget constraints and production possibilities, respectively. The model typically uses a system of simultaneous equations to represent the supply and demand relationships for all goods and factors of production in an economy.

A key concept within the Walrasian framework is the notion of a "Walrasian auctioneer" or a "tâtonnement" process. This hypothetical auctioneer adjusts prices up or down until a state of general equilibrium is reached, where the quantity supplied equals the quantity demanded for all goods and services simultaneously. In this equilibrium, no individual agent has an incentive to change their behavior. While the Walrasian model is a theoretical construct and does not perfectly reflect real-world markets, it has been highly influential in microeconomic theory and provides a foundational understanding of how complex market systems can theoretically coordinate economic activity.