tâtonnement process

E588136

economic adjustment mechanism general equilibrium concept price adjustment process

The tâtonnement process is an economic adjustment mechanism, introduced by Léon Walras, in which prices are iteratively revised in response to excess demand or supply until a general equilibrium is reached without actual trades occurring out of equilibrium.

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All labels observed (1)

Label	Occurrences
tâtonnement process canonical	1

Statements (46)

Predicate	Object
instanceOf	economic adjustment mechanism ⓘ general equilibrium concept ⓘ price adjustment process ⓘ
appliesTo	exchange economies ⓘ multi-market economies ⓘ production economies ⓘ
assumes	centralized price setting by an auctioneer ⓘ
assumption	agents take prices as given ⓘ markets are cleared only at equilibrium prices ⓘ no trades occur out of equilibrium ⓘ
characteristic	discrete or continuous price adjustments ⓘ dynamic adjustment path toward equilibrium ⓘ no quantity trading during adjustment ⓘ
conditionForConvergence	gross substitutability of excess demand functions ⓘ stability of excess demand functions ⓘ
contrastedWith	non-tâtonnement adjustment processes ⓘ quantity adjustment mechanisms ⓘ
coreIdea	prices are iteratively revised in response to excess demand or supply ⓘ
criticizedFor	ignoring quantity rationing during adjustment ⓘ lack of realism about no trade out of equilibrium ⓘ potential instability or cycles in some economies ⓘ
equilibriumCondition	market demand equals market supply in all markets ⓘ
etymology	from French "tâtonner" meaning "to grope" or "to grope one’s way" ⓘ
field	general equilibrium theory ⓘ microeconomics ⓘ
goal	reach general equilibrium ⓘ
historicalContext	developed in late 19th century ⓘ
idealizationOf	how competitive markets might adjust toward equilibrium ⓘ
influenced	modern dynamic general equilibrium models ⓘ
influencedBy	Léon Walras’s Elements of Pure Economics NERFINISHED ⓘ
introducedBy	Léon Walras NERFINISHED ⓘ
involves	calculation of excess demand in each market ⓘ iterative price revision until excess demand is zero ⓘ
languageOfOrigin	French ⓘ
mathematicalFormulation	difference equations for iterative price updates ⓘ differential equations for price dynamics ⓘ
mechanism	auctioneer adjusts prices based on excess demand ⓘ
relatedConcept	Walrasian auctioneer NERFINISHED ⓘ Walrasian equilibrium NERFINISHED ⓘ general competitive equilibrium ⓘ
relatedResult	Arrow–Hurwicz stability analysis NERFINISHED ⓘ Sonnenschein–Mantel–Debreu results on excess demand ⓘ
requiresInformation	knowledge of aggregate excess demand in each period ⓘ
teaches	conceptual separation between trading and price formation ⓘ
usedIn	stability analysis of general equilibrium ⓘ theoretical analysis of market stability ⓘ

How these facts were elicited

The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.

Instruction

You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10.

# Requirements
- If you don't know the subject at all, return an empty list.
- If the subject is not a named entity, return an empty list.
- Include at least one triple where predicate is "instanceOf".
- Do not get too wordy.
- Separate several objects into multiple triples with one object.

Input

Subject: tâtonnement process
Description of subject: The tâtonnement process is an economic adjustment mechanism, introduced by Léon Walras, in which prices are iteratively revised in response to excess demand or supply until a general equilibrium is reached without actual trades occurring out of equilibrium.

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Leon Walras → knownFor → tâtonnement process ⓘ

subject surface form: Léon Walras