A relaxed set of postulates for this framework is the Mas-Colell axioms, which eliminate the need for transitivity. In systems governed by this model, the set of excess demand functions is not restricted by the usual rationality restrictions on indiv
A relaxed set of postulates for this framework is the Mas-Colell axioms, which eliminate the need for transitivity. In systems governed by this model, the set of excess demand functions is not restricted by the usual rationality restrictions on individual demands in the economy, a result known as the Sonnenschein-Mantel-Debreu theorem. One argument for this theory considers an auction in which each agent calculates his demand for a good at every possible price and submits it to an auctioneer, from which a price in agreement with this theory will be computed. The production function usually used in this theory is due to Koopmans, although it was significantly refined by another economist in The Theory of Value. This theory's central tenet is that excess market demand always sums to zero. For 10 points, identify this theory of economics that claims that all markets and prices are always at a macroeconomic optimum.
A relaxed set of postulates for this framework is the Mas-Colell axioms, which eliminate the need for transitivity.
general equilibrium theory [or GET; or DGSE, dynamic generalized stochastic equilibrium,  accept neo-Walrasian theory; prompt on neo-classical theory; do not accept or prompt on "partial equilibrium theory" or "equilibrium theory"]