Pure exchange system Walrasian equilibrium An allocation(x1,…x) and price p'∈界are a Walrasian equilibrium, if Utility maximization x∈maxl1(x) X St.px1≤pO Feasible∑x≤o see the fiaPure exchange system • Walrasian equilibrium: – An allocation and price are a Walrasian equilibrium, if: • Utility maximization • Feasible see the fig. 1 ( , )I x x    L p  max ( ) . . i i i i x X i i x u x s t x       p p  1 I li l i x   =  