Values of Perfectly Competitive Economies

Sergiu Hart

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Perfectly competitive economies are economic models with many agents, each of whom is relatively insignificant. This chapter studies the relations between the basic economic concept of competitive (or Walrasian) equilibrium and the game-theoretic solution concept of value. It includes the classical Value Equivalence Theorem, together with its many extensions and generalizations, as well as recent results.

Keywords: perfect competition, value, Shapley value, competitive equilibrium, value equivalence principle

Journal of Economic Literature Classification Numbers: C7, D5