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Lecture 2 - Utilities, Endowments, and Equilibrium

Lecture 2 - Utilities, Endowments, and Equilibrium

This video was recorded at YALE - ECON 251 - Financial Theory. This lecture explains what an economic model is, and why it allows for counterfactual reasoning and often yields paradoxical conclusions. Typically, equilibrium is defined as the solution to a system of simultaneous equations. The most important economic model is that of supply and demand in one market, which was understood to some extent by the ancient Greeks and even by...

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