• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Equilibrium is a condition of balance in which all influences on a system are held in check and no change occurs. Disequilibrium is the condition of change resulting from some alteration in these influences. Market equilibrium, Nash equilibrium (NE), and reflective equilibrium are the three prevalent types in economic, strategic, and ethical analyses, respectively.

Market Equilibrium

Economists distinguish between general and partial equilibrium analyses in market systems. Partial equilibrium analysis examines individual markets or the decisions of particular firms or households, holding constant other considerations actually varying in general equilibrium analysis. Such partial analysis can therefore be wrong. General or static equilibrium represents the condition in which the equality of all quantities of supply and demand yields no incentive for market behavior to change. If supply exceeds ...

    • Loading...
    locked icon

    Sign in to access this content

    Get a 30 day FREE TRIAL

    • Watch videos from a variety of sources bringing classroom topics to life
    • Read modern, diverse business cases
    • Explore hundreds of books and reference titles