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:
“The reason why men enter into society, is the preservation of their property; and the end why they choose and authorize a legislative, is, that there may be laws made, and rules set, as guards and fences to the properties of all the members of the society: to limit the power, and moderate the dominion, of every part and member of the society.”
—John Locke (1632–1704)
“The reason why men enter into society, is the preservation of their property; and the end why they choose and authorize a legislative, is, that there may be laws made, and rules set, as guards and fences to the properties of all the members of the society: to limit the power, and moderate the dominion, of every part and member of the society.”
—John Locke (1632–1704)
“They who feel cannot keep their minds in the equilibrium of a pair of scales: fear and hope have no equiponderant weights.”
—Horace Walpole (1717–1797)