In mathematical economics, the Arrow–Debreu model is a theoretical general equilibrium model. It posits that under certain economic assumptions (convex...

economics, a state-price security, also called an Arrow–Debreu security (from its origins in the Arrow–Debreu model), a pure security, or a primitive security...

The term Arrow-Debreu market can refer to two closely related economic models: Arrow–Debreu model - a general market model, in which there are households...

In theoretical economics, an Arrow–Debreu exchange market is a special case of the Arrow–Debreu model in which there is no production - there is only an...

with the work of Lionel W. McKenzie (Walrasian theory), Kenneth Arrow and Gérard Debreu (Hicksian theory) in the 1950s. Broadly speaking, general equilibrium...

work and his other contributions, Debreu won the 1983 Nobel Prize in Economics. Arrow went on to extend the model and its analysis to include uncertainty...

transactions between the markets at any time. In the standard frictionless Arrow-Debreu model, since the nonmonetary competitive equilibria are already Pareto optimal...

long-run models. This trend probably reached its culmination with the Arrow–Debreu model of intertemporal equilibrium. The Arrow–Debreu model has canonical...

existence of a Walrasian equilibrium (aka competitive equilibrium) in the Arrow–Debreu model. Later, Shafer and Sonnenschein extended both theorems to irrational...

with the profit being the difference between the market prices. Arrow–Debreu model A model that suggests there must be a set of prices such that aggregate...