Arrow and Debreu: Existence of an Equilibrium for a Competitive Economy

Arrow, KJ, and G Debreu. 1954. “Existence of an Equilibrium for a Competitive Economy.” Econometrica 22:265-290.

Stemming from Walras: “It was assumed that each consumer acts so as to maximize his utility, each producer acts so as to maximize his profit, and perfect competition prevails, in the sense that each producer and consumer regards the prices paid and received as in- dependent of his own choices” (265).

On the need for these types of models: “Descriptively, the view that the competitive model is a reasonably accurate description of reality, at least for certain purposes” (265).

Results of this paper: “The main results of this paper are two theorems stating very general conditions under which a competitive equilibrium will exist” (266).

UPDATE:

"Walras did not, however, give any conclusive
arguments to show that the equations, as given, have a solution" (265)