Economic Equilibrium - Properties of Equilibrium

Properties of Equilibrium

Three basic properties of equilibrium in general have been proposed by Huw Dixon, These are:

Equilibrium property P1: The behaviour of agents is consistent.

Equilibrium property P2: No agent has an incentive to change its behaviour.

Equilibrium Property P3: Equilibrium is the outcome of some dynamic process (stability).

Read more about this topic:  Economic Equilibrium

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