Edgeworth's limit theorem, in economics, states that the core of an exchange economy, the set of allocations that no group of traders could improve upon by trading only among themselves, shrinks toward the set of competitive, or Walrasian, equilibrium allocations as the number of traders in the economy grows toward infinity. It is named for the economist Francis Ysidro Edgeworth.
Facts
Statementthe core of an economy shrinks to the set of Walrasian equilibria as the number of agents increases to infinity 1 Classification
Statement FormCharacterization Theorem 1 Connections
Has Statement Form
Proved By
Source Edgeworth's limit theorem - Wikipedia
Source Edgeworth's limit theorem - Wikipedia
Sources
1. Edgeworth's limit theorem - Wikipedia
Introduction
the core of an economy shrinks to the set of Walrasian equilibria as the number of agents increases to infinity
- Formal proofs were presented ... by Debreu and Scarf (1963)
Proved By: Gérard Debreu, Lead section
Formal proofs were presented under different assumptions by Debreu and Scarf (1963) as well as Aumann (1964), both proved under conditions stricter than what Edgeworth conjectured.
Proved By: Robert Aumann, Lead section
Formal proofs were presented under different assumptions by Debreu and Scarf (1963) as well as Aumann (1964), both proved under conditions stricter than what Edgeworth conjectured.
In Group: Economic Theory, Lead paragraph
Edgeworth's limit theorem is an economic theorem, named after Francis Ysidro Edgeworth, stating that the core of an economy shrinks to the set of Walrasian equilibria as the number of agents increases to infinity.
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