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Other graph problems can be solved in a similar way, e.g. minimum spanning tree or maximum matching. A similar solution applies to the more general case where each agent holds some subset of the edges. [3] For another example, where the VCG mechanism provides a sub-optimal approximation, see truthful job scheduling.
Complexity economics is the application of complexity science to the problems of economics. It relaxes several common assumptions in economics, including general equilibrium theory . While it does not reject the existence of an equilibrium, it features an non-equilibrium approach and sees such equilibria as a special case and as an emergent ...
There is not yet an authoritative definition of geoeconomics that is clearly distinct from geopolitics. The challenge of separating geopolitics and geoeconomics into separate spheres is due to their interdependence: interactions among nation-states as indivisible sovereign units exercising political power, and the predominance of neoclassical economics' "logic of commerce" that ostensibly ...
In other words, Sonnenschein–Mantel–Debreu raises questions about the degree to which general equilibrium theory can produce testable predictions about aggregate market variables. [ 21 ] [ 22 ] For this reason, Andreu Mas-Colell referred to the theorem as the “Anything Goes Theorem” in his graduate-level microeconomics textbook. [ 22 ]
Sonnenschein-Mantel-Debreu theorem (SMD theorem) is a theorem for exchange economy that can be expressed in the following way: . for a function that is continuous, homogeneous of degree zero, and in accord with Walras's law,there is an economy with at least as many agents as goods such that, for prices bounded away from zero, the function is the aggregate demand function for this economy.
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Convexity is a geometric property with a variety of applications in economics. [1] Informally, an economic phenomenon is convex when "intermediates (or combinations) are better than extremes". For example, an economic agent with convex preferences prefers combinations of goods over having a lot of any one sort of good; this represents a kind of ...
Econophysics is a non-orthodox (in economics) interdisciplinary research field, applying theories and methods originally developed by physicists in order to solve problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics.