Equilibrium Models in Economics: Purposes and Critical Limitations

The concept of equilibrium is fundamental to economic theory, according to which, it exists when supply and demand are balanced. Equilibrium Models in Economics critically examines the major problematic assumptions employed to build equilibrium models. It gives particular attention to the assumptions used to characterize learning, knowledge and expectations.

Lawrence Boland here explores whether equilibrium models can provide a realistic explanation of economic events and objects such as pri...