perfect competition

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perfect competition

n
(Economics) economics a market situation in which there exists a homogeneous product, freedom of entry, and a large number of buyers and sellers none of whom individually can affect price
References in periodicals archive ?
There are four dimensions along which closed and open team sports leagues can be compared: organizational (section 2), in a Walrasian model (section 3), using a Nash-equilibrium conjecture (section 4), and through empirical testing (section 5).
While both equilibrium conditions are in the core, Allias' equilibrium arises from many paths leaving an initial state, while only one equilibrium arises in the Walrasian model.
Early he was much taken with the Walrasian model of market equilibrium.
Strictly, the Walrasian model economy has no levels, only individual actors who potentially can contract with any other individual at very low cost.
Makowski and Ostroy (2001: 483) note the lack of realism of the standard Walrasian model of perfect competition, in that it treats perfectly competitive firms as price-takers.
2) We should note that Andolfatto (1996) and Merz (1995) were the first to integrate the matching approach to the labor market into an otherwise standard Walrasian model and to evaluate this model quantitatively.
Where the perverse curves are due to an externality, the Marshallian model and not the Walrasian model define the conditions under which unstable equilibria exist.
In my estimation both the theoretical and the historical evidence clearly favour the Walrasian model if we desire to live in a free society and economy.
Parameters are chosen so that the two classic models of price dynamics, the Walrasian model and the Marshallian model, give opposite predictions.
The Walrasian model allows, therefore, only simple or natural fluctuations, inherent in any free economy and society.
Much empirical evidence shows that wages are both more volatile and more persistent than implied by Walrasian models.
This ability and the systematic process of model enrichment it permits make it possible to predict that the dynamic general equilibrium models developed around the neoclassical stochastic growth model -- but possibly evolving towards friction-prone non -- Walrasian models -- will become the platform for a new neoclassical synthesis.