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Can we identify Walrasian allocations?

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  • Antonio Manresa

    (Universitat de Barcelona i CREB, Avda. Diagonal 690, 08034 Barcelona, Spain)

Abstract

We consider a discrete time, pure exchange infinite horizon economy with $ n\geq 2$ consumers and $\ell \geq 1$ consumption goods per period. Within the framework of decentralized mechanisms, we show that for any given consumption trade at any period of time, say at time one, the consumers will need in general an infinite dimensional (informational) space to identify such a trade as an intertemporal Walrasian one. However, we show a set of environments where the Walrasian trades at each period of time can be achieved as the equilibrium trades of a sequence of decentralized competitive mechanisms, using only both current prices and quantities to coordinate decisions.

Suggested Citation

  • Antonio Manresa, 2002. "Can we identify Walrasian allocations?," Review of Economic Design, Springer;Society for Economic Design, vol. 7(1), pages 57-73.
    • Handle: RePEc:spr:reecde:v:7:y:2002:i:1:p:57-73
    Note: Received: 1 December 1999 / Accepted: 31 October 2000
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    References listed on IDEAS

    as
    1. Leonid Hurwicz & Hans F. Weinberger, 2015. "A Necessary Condition for Decentralization and an Application to lntertemporal Allocation," World Scientific Book Chapters, in: Mukul Majumdar (ed.), Decentralization in Infinite Horizon Economies, chapter 8, pages 119-151, World Scientific Publishing Co. Pte. Ltd..
    2. Kehoe, Timothy J & Levine, David K, 1985. "Comparative Statics and Perfect Foresight in Infinite Horizon Economies," Econometrica, Econometric Society, vol. 53(2), pages 433-453, March.
    3. Mount, Kenneth & Reiter, Stanley, 1974. "The informational size of message spaces," Journal of Economic Theory, Elsevier, vol. 8(2), pages 161-192, June.
    4. Venkatesh Bala & Mukul Majumdar & Tapan Mitra, 1991. "Decentralized evolutionary mechanisms for intertemporal economies: A possibility result," Journal of Economics, Springer, vol. 53(1), pages 1-29, February.
    5. Aizpurua, Jose & Manresa, Antonio, 1993. "An infinite dimensional extension of the theory of decentralized mechanisms," Mathematical Social Sciences, Elsevier, vol. 26(2), pages 157-173, September.
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    More about this item

    Keywords

    Walrasian allocation; informational decentralization; mechanism design;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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