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perfect competition
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
Alternate versions available:
1987 Edition
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Abstract
This article attempts a critical appraisal of the literature on perfect competition as it has evolved since the work of Debreu–Scarf and Aumann in the 1960s, following papers of Debreu–Scarf and Aumann. It focuses on mathematical techniques that have been garnered to cope with the presuppositions of the classical theory relating to finitude, convexity and agent-independence.
Keywords
additivity; aggregation; Arrow–Debreu model of general equilibrium; central limit theorems; competitive equilibrium; consumptions sets; convexity; core equivalence; cores; correspondences; equilibrium; existence of general equilibrium; externalities; fixed-point theorems; game theory; Hayek, F. A.; hyperplanes; idealized limit economy; incentive compatibility; independence; infinite commodities; large games; law of large numbers; Lindahl equilibrium; Lyapunov theorem; marginal cost pricing; measure spaces; negligibility; non-convexity; perfect competition; probability; public goods; returns to scale; Shapley–Folkman theorem; Steinitz's theorem; Wald, A.
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How to cite this article
Khan, M. Ali. "perfect competition." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 19 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_P000056> doi:10.1057/9780230226203.1267
