Price theory vs mechanism design: equilibrium is never a free parameter
sebkrier · x · 2026-11-07
alzzyd argues that in classical price theory, once preferences and technologies are specified, the solution concept is not a free parameter—it's always competitive equilibrium, so outcomes are driven purely by preferences and technology. kunzhangte notes the contrast with mechanism design, a framework he understands while price theory remains opaque, sparking discussion of how the two traditions differ.
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