CeDEx Seminar - Michael Richter (Royal Holloway)

Location
A40 Sir Clive Granger Building
Date(s)
Wednesday 21st November 2018 (14:00-15:00)
Description

Normative Equilibrium: The permissible and the forbidden as devices for bringing order to economic environment

We introduce the notion of a normative equilibrium which brings harmony to "general equilibrium"- like environments. Norms stipulate what is permissible and what is forbidden. The main solution concept is a maximally permissive set of alternatives together with a feasible profile of optimal choices. The norms are uniform and play a role analogous to that of price systems in competitive equilibrium and also feature an element of "fairness" since all individuals face the same choice set. The solution concept is analysed and applied to a variety of economic settings.

 Keywords: Normative Equilibrium, Envy-Free, General Equilibrium, Convexity.


Centre for Decision Research and Experimental Economics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

telephone: +44 (0)115 951 5458
Enquiries: jose.guinotsaporta@nottingham.ac.uk
Experiments: cedex@nottingham.ac.uk