Walras auctioneer
A Walras auctioneer is a fictitious auctioneer introduced by Léon Walras in his general equilibrium model to determine the market equilibrium in the tâtonnement process .
Walras represents the actually versatile exchange traffic in its mathematical model simplification as a centralized market, in the middle of which there is an auctioneer who is in visual and audio contact with all market participants and varies the prices until a general equilibrium is reached, i.e. all Individual economies are satisfied with respect to all goods at uniform prices, ie everyone pays the same price for a certain good.
The following then applies to these equilibrium prices:
- The supply is equal to the demand for every good (market equilibrium);
- Income is equal to its expenditure for each individual economy (exchange equilibrium).
The market equilibrium is not included in the exchange equilibrium, but represents an independent postulate.
The Walras model is essentially a natural exchange model by assuming the neutral role of money. However, as soon as a payment function is assigned to money, time delays in the exchange must be taken into account, which make the occurrence of equilibrium conditions problematic.
See also
Individual evidence
- ^ Hans Christoph Binswanger : Money and balance. A proposal to overcome the dichotomy of price and value theory. Zeitschrift für Wirtschafts- und Sozialwissenschaft, 110, 1990, p. 339.