A General Equilibrium in Economies with Friction and its Relation to Walrasian Equilibria

Statistical equilibrium is a general equilibrium concept which maximizes entropy subject to the available information, and is maximally noncommittal with regard to missing information. Although conceptually distinct from Walrasian equilibrium, I show that 1) statistical equilibrium is \ecient in a certain sense, 2) it exists under weak conditions, and that 3) Walrasian equilibrium is mathematically a special case of statistical equilibrium. Statistical equilibrium can be applied to analyze economies with not necessarily well-organized markets, such as the labor and the real estate markets.