Walrasian equilibrium

A market outcome in which prices make each consumer’s choices optimal and aggregate supply equal aggregate demand in every market.

Excess demand: The amount by which quantity demanded exceeds quantity supplied at a given price. Price adjustment is often described as responding to excess demand in each market.
Competitive market: A market with many buyers and sellers, none individually able to influence the market price. Price-taking behavior is the standard setting for Walrasian equilibrium.
Arrow–Debreu model: A formal general-equilibrium model representing dated and contingent goods in a unified market framework. It provides a rigorous setting for proving existence of Walrasian equilibria.
Nash equilibrium: A profile of strategies in which no player can gain by unilaterally changing strategy. It models strategic interaction, whereas Walrasian equilibrium assumes agents take prices as given.
Equilibrium selection: The problem of determining which equilibrium outcome emerges when a model permits several equilibria. Existence alone does not identify which Walrasian price vector an economy will reach.
Walras's law: The identity stating that the value of aggregate excess demand across all markets is zero when budgets balance. It links market imbalances and helps show why clearing all but one market can imply clearing the last.
Endowment economy: An economy in which consumers begin with given bundles of goods that they may trade. Initial endowments determine consumers’ wealth and shape equilibrium demand.
First fundamental theorem of welfare economics: The theorem that, under standard assumptions, a competitive equilibrium allocation is Pareto efficient. It states a welfare property of competitive equilibria, not a guarantee of fairness.
Edgeworth equilibrium: A competitive allocation resistant to coalitions that could trade among themselves and make all members better off. It emphasizes coalition stability and connects finite exchange economies to competitive outcomes.
Global stability: The property that a dynamic system converges to an equilibrium from a broad range of initial states. A market-clearing price vector need not be reached from every starting price.

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