Walrasian Equilibrium Computation, Network Formation, and the Wen Theorem

The paper studies the Walrasian equilibrium theory of division of labor for large economies with weakly convex production techniques and with the presence of transaction costs. Earlier results published by Wen are revised and generalized so that the new versions can be applied to a much larger category of economic models. A simple example demonstrates how the theoretical results can be used for Walrasian equilibrium computation and equilibrium network structure identification