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
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)
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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