To Infinity and Beyond: Scaling Economic Theories via Logical Compactness

@article{Gonczarowski2019ToIA,
title={To Infinity and Beyond: Scaling Economic Theories via Logical Compactness},
author={Yannai A. Gonczarowski and S. Kominers and Ran I. Shorrer},
journal={Microeconomics: General Equilibrium & Disequilibrium Models eJournal},
year={2019}
}

Microeconomics: General Equilibrium & Disequilibrium Models eJournal

Many economic-theoretic models incorporate finiteness assumptions that, while introduced for simplicity, play a real role in the analysis. Such assumptions introduce a conceptual problem, as results that rely on finiteness are often implicitly nonrobust; for example, they may rely on edge effects or artificial boundary conditions. Here, we present a unified method that enables us to remove finiteness assumptions, such as those on datasets, market sizes, and time horizons. We then apply our… CONTINUE READING