Economic Disequilibrium in the Opinion of the Economist Janos Kornai
Economic Disequilibrium in the Opinion of the Economist Janos Kornai

Summary/Abstract: According to the principles of the general economic equilibrium each economic agent is rational. It always pursues to optimize the activity it carries out, which in mathematical terms means to solve an extreme – minimum or maximum – problem grounded on a determined order of the preferences and by complying with certain restrictions. In order to put in mathematical form the company’s general interests,a general “welfare function” can be designed, ensuring the fulfillment of the optimal state for all economic agents. The economist J. Kornai contradicts this conclusion, demonstrating that society is formed of groups of economic agents with identical or, on the contrary, contradicting interests, such that the decisions they make in order to organize the economic activity should be based on compromises and on the attempt of attenuating contradictions.

• Details
• Contents