Advanced Microeconomics
                             General equilibrium theory I: the main results
                                                        Harald Wiese
                                                      University of Leipzig
     Harald Wiese (University of Leipzig)             Advanced Microeconomics                                                 1 / 52
   Part F. Perfect competition and competition policy
        1  General equilibrium theory I: the main results
        2  General equilibrium theory II: criticism and applications
        3  Introduction to competition policy and regulation
    Harald Wiese (University of Leipzig)          Advanced Microeconomics                                          2 / 52
    General equilibrium theory I: the main results
        1    Introduction
        2    Exchange theory: positive theory
        3    Exchange and production economy: positive theory
        4    Normative theory
     Harald Wiese (University of Leipzig)             Advanced Microeconomics                                                 3 / 52
    General equilibrium theory
    Introduction
             Allocation of goods takes place in two di¤erent modes:
                     the …rst of which being person-to-person;
                     the second mode is impersonal trading, expounded by General
                     Equilibrium Theory (GET).
             GET envisions a market system with perfect competition.
             All agents (households and …rms) are price takers.
             Under which conditions are there prices such that
                     all actors behave in a utility, or pro…t, maximizing way and
                     the demand and supply schedules can be ful…lled simultaneously?
             —>Walras equilibrium
     Harald Wiese (University of Leipzig)             Advanced Microeconomics                                                 4 / 52