Measures of economies with an arbitrarily large number of equilibria

LOI, ANDREA;MATTA, STEFANO

2012-01-01

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Abstract

Balasko (1978) shows that in a compact subset of the space of economies, not too many economies can have too many equilibria. We extend Balasko’s result to the whole set of economies for a suitable measure. We show that the measure of economies with a large number of equilibria approaches zero as this number tends to infinity. An analogous result in the infinite-dimensional setting is also established.