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
Famous quotes containing the words properties of, properties and/or equilibrium:
“A drop of water has the properties of the sea, but cannot exhibit a storm. There is beauty of a concert, as well as of a flute; strength of a host, as well as of a hero.”
—Ralph Waldo Emerson (1803–1882)
“A drop of water has the properties of the sea, but cannot exhibit a storm. There is beauty of a concert, as well as of a flute; strength of a host, as well as of a hero.”
—Ralph Waldo Emerson (1803–1882)
“There is a relation between the hours of our life and the centuries of time. As the air I breathe is drawn from the great repositories of nature, as the light on my book is yielded by a star a hundred millions of miles distant, as the poise of my body depends on the equilibrium of centrifugal and centripetal forces, so the hours should be instructed by the ages and the ages explained by the hours.”
—Ralph Waldo Emerson (1803–1882)