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From the Point to Chaos: The Evolution of the Concept of Equilibrium in Economic Theory

Author

Listed:
  • Tomasz Kopczewski

    (University of Warsaw, Faculty of Economic Sciences)

  • Jan Lisicki

    (University of Warsaw, Faculty of Economic Sciences)

Abstract

This article reconsiders equilibrium as a representation of economic order. It separates five properties often treated together—existence, uniqueness, stability, convergence, and predictability—and shows that fixed-point results in general equilibrium establish existence without guaranteeing the other four. When uniqueness, stability, convergence, or predictability fails, the relevant object of analysis may shift from a single point to an equilibrium-selection process, a regime, an adjustment path, or a distribution. The same distinction matters empirically because equilibrium is not directly observed but inferred from a maintained model and identification assumptions. We therefore distinguish two ideal-typical orientations: a solution-centred approach, which seeks an object that closes the model, and a temporal-statistical approach, which locates order in persistent patterns of dynamics and distributions. The article argues that the continued appeal of point-based equilibrium reflects its tractability and explanatory simplicity as well as its theoretical role.

Suggested Citation

  • Tomasz Kopczewski & Jan Lisicki, 2026. "From the Point to Chaos: The Evolution of the Concept of Equilibrium in Economic Theory," Working Papers 2026-29, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2026-29
    as

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    File URL: https://www.wne.uw.edu.pl/download_file/2c6a066e-0101-4311-927a-57387d32ed46/4282
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    References listed on IDEAS

    as
    1. Paul Davidson, 1991. "A Technical Definition of Uncertainty and the Long-run Non-neutrality of Money," Palgrave Macmillan Books, in: Louise Davidson (ed.), Inflation, Open Economies and Resources, chapter 15, pages 159-170, Palgrave Macmillan.
    2. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70(3), pages 322-322.
    3. Lachmann, Ludwig M, 1976. "From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 54-62, March.
    4. Jess Benhabib & Richard H. Day, 1981. "Rational Choice and Erratic Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(3), pages 459-471.
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    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies

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