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Non-Walrasian decentralization of the core

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  • Koutsougeras, Leonidas C.
  • Ziros, Nicholas

Abstract

We show that in large finite economies, core allocations can be approximately decentralized as Nash (rather than Walras) equilibrium. We argue that this exercise is an essential complement to asymptotic core equivalence results, because it implies that in some approximate sense individual attempts to manipulate the decentralizing prices cannot be beneficial, which fits precisely the interpretation of asymptotic core convergence, namely the emergence of price taking.

Suggested Citation

  • Koutsougeras, Leonidas C. & Ziros, Nicholas, 2011. "Non-Walrasian decentralization of the core," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 610-616.
    • Handle: RePEc:eee:mateco:v:47:y:2011:i:4:p:610-616
    DOI: 10.1016/j.jmateco.2011.08.001
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