Equilibrium in the jungle
|Author:||Bc. Jiří Havlena|
|Year:||2016 - winter|
|Leaders:|| doc. PhDr. Martin Gregor Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This bachelor thesis firstly introduces the jungle model, in which economic transactions are
driven by coercion. The jungle is closely related to the model of exchange economy. The
differences between both setups are discussed and consumption sets are introduced as additional
constraint of agents in exchange economy. Following is the essential part of the thesis,
discussing effects of these sets on welfare properties and competitive equilibria. The results
suggest that consumption sets extend the set of Pareto efficient allocations in exchange
economy. Analysis of competitive equilibria suggests interesting results about existence of nonefficient
competitive equilibrium allocations.