New Techniques for the Study of Stochastic Equilibrium Process

Abstract

This paper develops the notion of transition correspondences: the set-valued analog of transition probabilities. A generalization of the Feller property for transition probabilities is shown to imply the existence of a selection from the transition correspondence having a stationary equilibrium. These techniques are applied to the existence problem for Markov temporary equilibrium processes in place of assumptions about the existence of continuous selections from the equilibrium price correspondence.