Conditions that exhaust the implications of rationality (homogeneity, symmetry, definiteness) are well known, but these apply under a single set of constraints. If a situation can be compared with another situation where extra constraints are imposed, there are stronger implications. One example is the (local) LeChatelier principle. However, a global LeChatelier principle does not always hold, and this paper shows that it cannot always hold in any nondegenerate problem. Despite this, a global...Expand abstract
- Journal of Economic Theory
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Rationality and the LeChatelier Principle.
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