General Equilibrium Theory
An Introduction
2nd Edition
$49.99 (X)
 Author: Ross M. Starr
 Date Published: April 2011
 availability: Available
 format: Paperback
 isbn: 9780521533867
$49.99 (X)
Paperback

General Equilibrium Theory: An Introduction presents the mathematical economic theory of price determination and resource allocation from elementary to advanced levels, suitable for advanced undergraduates and graduate students of economics. This ArrowDebreu model (known for two of its most prominent founders, both Nobel Laureates) is the basis of modern price theory and of a wide range of applications. The text starts with elementary models: Robinson Crusoe, the Edgeworth Box, and a 2commodity 2household 2firm model. It gives a brief introduction to the mathematics used in the field (continuity, convexity, separation theorems, Brouwer fixedpoint theorem, pointtoset mappings, and ShapleyFolkman theorem). It then presents the mathematical general equilibrium model in progressively more general settings, including pointvalued, setvalued, and nonconvex setvalued demand and supply. Existence of general equilibrium, fundamental theorems of welfare economics, core convergence, and futures markets with time and uncertainty are treated fully. The new edition updates discussion throughout and expands the number and variety of exercises. It offers a revised and extended treatment of core convergence, including the case of nonconvex preferences, and introduces the investigation of approximate equilibrium with Ushaped curves and nonconvex preferences.
Read more Treatment progresses from elementary models (suitable for undergraduates) to more advanced (for graduate students) at a relaxed pace with ample examples
 Abundance of exercises, designed to be manageable and challenging
 Treatment is selfcontained, including development of the necessary mathematics, with elementary proof of the Brouwer fixed point theorem
Reviews & endorsements
"Most books on the theory of general equilibrium have adopted the terribly arid axiomatic style illustrated in pure mathematics by Nicolas Bourbaki’s treatise. That style makes no compromise with rigor. But it often defies intuition. Ross Starr’s book is the best attempt so far at combining economic intuition with rigor in dealing with those staples of general equilibrium theory that are the existence and the two welfare theorems. Part A of the book deals with special cases of the general equilibrium model up to the twogood, twofactor, twoagent model, something that is never done in more ‘advanced’ presentations. Part B is a remarkably lucid introduction to the mathematics of pointset topology needed in any serious study of the general equilibrium model. Both parts will be welcome by undergraduate students. The rest of the book is more suitable to firstyear graduate students but, even there, the author does his best to convey enough economic intuition for the model to be economically interesting. Two points are particularly noteworthy in that respect: 1) the treatment of nonconvexity in large economies (preferences, production sets) through the ShapleyFolkman theorem; and 2) a simplicial proof of Brouwer’s fixed point theorem." – Yves Balasko, University of York, United Kingdom
See more reviews"This book contains an excellent exposition of classic general equilibrium theory. While it eases the reader into the subject slowly, it does so without compromising the analytical rigor that is necessary to understand the elegant foundations of the economic model of competitive markets." – Alberto Bisin, New York University
"Ross Starr has made a fine service to the profession when preparing this new edition of his nice introductory textbook on general equilibrium theory. This volume is slim, yet fully selfcontained and rigorous; it should be quite useful to advanced undergraduates and graduate students, as well as to researchers in economic theory and mathematical economics." – JeanMichel Grandmont, Università Ca' Foscari di Venezia, Italy; Centre de Recherche en Economie et Statistiques, France
"A comprehensive treatment of classical general equilibrium theory from its most elementary to its most abstract formulation. Selfcontained mathematical chapters and exercises at the end of each chapter make this an ideal textbook for advancedlevel courses." – Paolo Siconolfi, Columbia University
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×Product details
 Edition: 2nd Edition
 Date Published: April 2011
 format: Paperback
 isbn: 9780521533867
 length: 380 pages
 dimensions: 254 x 178 x 20 mm
 weight: 0.66kg
 contains: 42 b/w illus.
 availability: Available
Table of Contents
Part I. General Equilibrium Theory: Getting Acquainted:
1. Concept and history of general equilibrium theory
2. An elementary general equilibrium model  the Robinson Crusoe economy
3. The Edgeworth box
4. Integrating production and multiple consumption decisions: a 2 x 2 x 2 model
5. Existence of general equilibrium in an economy with an excess demand function
Part II. Mathematics:
6. Logic and set theory
7. RN: real Ndimensional Euclidean space
8. Convex sets, separation theorems, and nonconvex sets in RN
9. The Brouwer fixed point theorem
Part III. An Economy with Bounded Production Technology, Supply and Demand Functions:
10. Markets, prices, commodities, and mathematical economic theory
11. Production with bounded firm technology
12. Households
13. A market economy
14. General equilibrium of the market economy with an excess demand function
Part IV. An Economy with Unbounded Production Technology, Supply and Demand Functions:
15. Theory of production: the unbounded technology case
16. Households: the unbounded technology case
17. A market economy: the unbounded technology case
18. General equilibrium of the market economy: the unbounded technology case
Part V. Welfare Economics and the Scope of Markets:
19. Pareto efficiency and competitive equilibrium
20. Time and uncertainty: futures markets
Part VI. Bargaining and Equilibrium: The Core:
21. The core of a market economy
22. Convergence of the core of a large economy
Part VII. An Economy with Supply and Demand Correspondences:
23. Mathematics: analysis of point to set mappings
24. General equilibrium of the market economy with an excess demand correspondence
25. Ushaped cost curves and concentrated preferences
Part VIII. Standing on the Shoulders of Giants:
26. Next steps
27. Summary and conclusion.Instructors have used or reviewed this title for the following courses
 Advance Price Theory ll
 Computational Economics for Agricultural Economists
 Microeconomic Theory ll
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