Existence of a Statistical Equilibrium for an Economy with Endogenous Offer Sets

This paper evolved from my master thesis at University of Tokyo. After completing my coursework in 2006-2007, I didn’t know what to write for my master thesis. My advisor Hiroshi Yoshikawa suggested that I study Foley’s (1994) statistical equilibrium model. I found the paper interesting but I thought the model does not easily extend to a production economy, so that’s what I did in my thesis. Along the way, I learned a good deal about convex optimization and duality.