Showing papers by "Kenneth J. Arrow published in 1973"
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5,312 citations
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01 Sep 1973
TL;DR: This article surveys the ways in which recognition of limitations of information available to economic agents affects the workings of the system and the way in which the propositions of economic theory need restatement.
Abstract: : The paper surveys the ways in which recognition of limitations of information available to economic agents affects the workings of the system and the way in which the propositions of economic theory need restatement. The key point is the fact that probability distributions over economic variables are conditional upon signals on other, apparently irrelevant variables; further, this information is differentially available to different individuals and requires resources to acquire and transmit. Among the economic phenomena to which the information concept is relevant are (1) the response of the system to variables other than current prices, e.g.., quantities and past prices; (2) research about both engineering and markets; (3) the possible disadvantages of information-gathering; (4) the incentive to emit signals, as in advertising and the acquisition of educational credentials; (5) the development of organizations as an economy in information acquisition and their costs of coordination; and (6) the prevention of some markets from existing and the preservation of other markets through non-market activities, including the development of ethical codes.
225 citations
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TL;DR: A survey of the development of the theory of general equilibrium in a competitive economy and its role in the allocation of resources can be found in this article, with an evaluation of the needs for further development.
Abstract: : The lecture is designed to survey modern development of the theory of general equilibrium in a competitive economy and its role in the allocation of resources A survey is given of the state of the theory as developed by JR Hicks, PA Samuelson, and their predecessors as of about 1945, followed by an evaluation of the needs for further development The differing general equilibrium tradition in the German-language literature is summarized
176 citations
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TL;DR: A saddle point theory in terms of extended Lagrangian functions is presented for nonconvex programs and the results parallel those for convex programs conjoined with the usuallagrangian formulation.
Abstract: A saddle point theory in terms of extended Lagrangian functions is presented for nonconvex programs. The results parallel those for convex programs conjoined with the usual Lagrangian formulation.
70 citations