Hahn: On Non-Walrasian Equilibria

Hahn, Frank. (1978). "On Non-Walrasian Equilibria". Review of Economic Studies, 45(139), 1. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=4624761&site=ehost-live\par

“I shall call an economy non-Walrasian whenever the trading possibilities of agents cannot be described as the set of trades which at given prices make the value of purchases no greater than the value of sales” (1). Non-Walrasian economics is important to understand, mostly because Walrasian economics can’t fully explain current economic systems. Hahn highlights two difficulties when using Walrasian economic analysis: what happens when one wants to highlight and explore an economy that is not in equilibrium and secondly, that the perfect competition postulate is empirically wrong (1).