Economics and Finance


Price Uncertainty Principle

Authors: Chuanli Chen

In modern economics, there are many theories that discuss the equilibrium. This convention was originally from two famous economists Leon Walras and Afred Marshall. Walras first described general equilibrium theory in 1874. Afred Marshall put forward the partial equilibrium theory in 1920. However, there was never any observational evidence for the existence of equilibrium. In this paper, I will put forward a new price theory, which is named Price Uncertainty Principle. I will point out the flaws of these two equilibrium theories and discuss why the price mechanism is not the invisible hand, then further discuss why partial equilibrium and general equilibrium are non-existent. I will prove that there is no price equilibrium point and market prices are always fluctuating

Comments: 22 Pages.

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Submission history

[v1] 2017-05-25 10:44:59
[v2] 2017-06-30 01:01:01
[v3] 2017-10-14 16:41:47

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