The Walrasian Paradigm

A few basic assumptions of the Walrasian Paradigm:

• Consumers make economic decisions based on exogenously determined and self-interested preferences
  • Preferences do not change over time

• Economic transactions are the only form of social interaction
  • Repeated interactions are ignored
  • Price vectors are presumed to encapsulate the influence and action of other economic actors

• Returns to scale are ignored
  • Institutions do not evolve
  • Societal learning is ignored

• Institutions exist to facilitate trade

Home