partial equilibrium

partial equilibrium definition - business

partial equilibrium

An analysis of equilibrium in a particular market or sector that ignores the effects in other industries. For example, an economist may want to study the impact of a tax on light bulbs while assuming all things equal in other markets. Partial equilibrium analysis is more useful when the market is narrowly defined.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.