A demand-and-supply approach to markets, core stability, and mechanism design
Abstract
The author of this article uses demand-and-supply diagrams to study a production economy with a numéraire, providing elementary proofs to fundamental economic results. He demonstrates that the competitive outcome lies within the core of the economy’s market game and illustrates core convergence to the competitive equilibrium when the market thickens. He further explains the impossibility of efficient trade under private preferences and incentive constraints. His graphical approach makes economic theory more accessible and unified for learning and teaching.
Fields of Study & Subjects
Digital Platforms and Economics
Supply Chain and Inventory Management
Game Theory and Applications
Publication details
- Journal / source
- The Journal of Economic Education
- Publisher
- Informa UK Limited
- Volume
- 57
- Issue
- 2
- Pages
- 223–235
- Publication date
- 14 February 2026
- Language
- EN