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Journal of Dynamics and Games (JDG)
 

Evolution and jump in a Walrasian framework

Pages: 279 - 301, Volume 3, Issue 3, July 2016      doi:10.3934/jdg.2016015

 
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Elvio Accinelli - Facultad de Economa de la UASLP, Aveninda Pintores S/N, San Luis Potosi, 78280, Mexico (email)
Enrique Covarrubias - Facultad de Economa de la UASLP, Aveninda Pintores S/N, San Luis Potosi, 78280, Mexico (email)

Abstract: Lower profit rates play an importan role in the evolution of an ownership private economy. We argue that if managers look to maximize profits rates, then the decision to change, to those branches, or technologies, that offer higher rates of profits, plays an important role in the characterization of economies. If managers choose to produce according to those technologies that promise higher profit rates, then along the time, the distribution of the firms over the set of available technologies change, and therefore the economic fundamentals change. Under conditions of imperfect information, the imitation of the most successful firms plays can a decisive role in deciding how to produce. Along a path of Walrasian equilibria, regular economies can become singular and if this occurs, big changes must be expected after decisions of the firms for the next period.

Keywords:  Equilibrium path, regular and singular economies, profit rates.
Mathematics Subject Classification:  D51, D21.

Received: May 2016;      Revised: September 2016;      Available Online: October 2016.

 References