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On a spontaneous decentralized market process

Author

Listed:
  • Satoru Fujishige

    (Kyoto University, Japan)

  • Zaifu Yang

    (University of York, United Kingdom)

Abstract

We examine a spontaneous decentralized market process widely observed in real life labor markets. This is a natural random decentralized dynamic competitive process. We show that this process {\it converges globally and almost surely} to a competitive equilibrium. This result is surprisingly general by assuming only the existence of an equilibrium. Our findings have also meaningful policy implications.

Suggested Citation

  • Satoru Fujishige & Zaifu Yang, 2017. "On a spontaneous decentralized market process," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 2(1), pages 1-37, December.
    • Handle: RePEc:jmi:articl:jmi-v2i1a1
    DOI: 10.22574/jmid.2017.12.001
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    References listed on IDEAS

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    Cited by:

    1. Satoru Fujishige & Zaifu Yang, 2019. "Markovian Core, Indivisibility, and Successive Pareto-Improvements," Discussion Papers 19/11, Department of Economics, University of York.
    2. Leshno, Jacob D. & Pradelski, Bary S.R., 2021. "The importance of memory for price discovery in decentralized markets," Games and Economic Behavior, Elsevier, vol. 125(C), pages 62-78.
    3. Satoru Fujishige & Zaifu Yang, 2022. "Barter markets, indivisibilities, and Markovian core," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 39-48, January.

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    More about this item

    Keywords

    Spontaneous market process; decentralized market; competitive equilibrium.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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