Walrasian Auctioneer

A Walrasian auctioneer is a theoretical concept in economics that models how markets reach equilibrium. Imagine an auctioneer who announces prices for goods and asks buyers and sellers to reveal how much they want to buy or sell at those prices. Based on their responses, the auctioneer adjusts the prices until the quantities demanded equal the quantities supplied for all goods simultaneously. This process ensures that supply matches demand, leading to an efficient allocation of resources. In reality, no single auctioneer performs this task, but the concept helps economists understand how markets can naturally find stable prices.