Gerard Debreu

Gerard Debreu was a renowned economist and mathematician who contributed to understanding how markets work. He developed mathematical models to show how individual preferences, prices, and resources lead to an efficient allocation of goods—meaning everyone’s needs are satisfied as best as possible. His work helped prove that, under certain conditions, there is a stable set of prices where supply equals demand, ensuring markets can function smoothly. This framework, called "general equilibrium theory," provides a rigorous foundation for modern economics, explaining how various factors interact in complex economies.