Map of Ploubalay on As consumers, people want to maximize utility, or find the most desirable bundle of goods, subject to their limited budgets. As suppliers they want to maximize their profits. People are assumed to be economically rational in that they do not take actions that are contrary to the achievement of their goals, whatever these may be. The widespread use of mathematical optimization tools in the second half of the 20th century caused the emphasis to shift from the process resulting in equilibrium to the equilibrium itself. The various arbitrage stories describing the process leading to equilibrium are now largely relegated to introductory courses. However, even if time and space constraints prevent the arbitrage story from being told, it implicitly underlies all neoclassical equilibria. The reason behind the search for and analysis of equilibria is to explain social phenomena in terms of the rational decisions of economizing individuals. Map of Ploubalay 2016.
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