General Equilibrium and the Emergence of (Non) Market Clearing Trading Institutions
AbstractWe consider a pure exchange economy, where for each good several trading institutions are available, only one of which is market-clearing. The other feasible trading institutions lead to rationing. To learn on which trading institutions to coordinate, traders follow behavioural rules of thumb that are based on the past performances of the trading institutions. Given the choice of institutions, market outcomes are determined by an equilibrium concept that allows for rationing. We find that full coordination on the market-clearing institutions without any rationing is a stochastically stable outcome, independently of the characteristics of the alternative available institutions. We also find, though, that coordination on other, non-market-clearing institutions with rationing can be stochastically stable.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5795.
Date of creation: Sep 2006
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Carlos Alós-Ferrer & Georg Kirchsteiger, 2010. "General equilibrium and the emergence of (non)market clearing trading institutions," Economic Theory, Springer, vol. 44(3), pages 339-360, September.
- Carlos Alós-Ferrer & Georg Kirchsteiger, 2010. "General Equilibrium and the Emergence of (Non) Market Clearing Trading Institutions," ULB Institutional Repository 2013/149592, ULB -- Universite Libre de Bruxelles.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- D4 - Microeconomics - - Market Structure and Pricing
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carlos Alos-Ferrer & Nick Netzer, 2008.
"The Logit-Response Dynamics,"
TWI Research Paper Series
28, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, vol. 67(1), pages 17-45, January.
- Stahn, Hubert, 1999. "Monopolistic behaviors and general equilibrium: a generalization of Nikaido's work," Journal of Mathematical Economics, Elsevier, vol. 32(1), pages 87-112, August.
- Alvin E. Roth & Axel Ockenfels, 2002.
"Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1093-1103, September.
- Alvin E. Roth & Axel Ockenfels, . "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," Papers on Strategic Interaction 2002-32, Max Planck Institute of Economics, Strategic Interaction Group.
- Postlewaite, Andrew, 1979. "Manipulation via Endowments," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 255-62, April.
- Carlos Alós-Ferrer & Georg Kirchsteiger, 2003.
"Does Learning Lead to Coordination in Market Clearing Institutions?,"
Vienna Economics Papers
0319, University of Vienna, Department of Economics.
- Kirchsteiger,Georg & Alós-Ferrer,Carlos, 2003. "Does Learning Lead to Coordination on Market Clearing Institutions?," Research Memoranda 053, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Kirchsteiger,Georg & Alós-Ferrer,Carlos, 2003. "Does Learning Lead to Coordination on Market Clearing Institutions?," Research Memorandum 053, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- repec:ner:louvai:info:hdl:2078.1/88097 is not listed on IDEAS
- Mas-Colell, Andreu & Nachbar, John H., 1991. "On the finiteness of the number of critical equilibria, with an application to random selections," Journal of Mathematical Economics, Elsevier, vol. 20(4), pages 397-409.
- Dreze, Jacques H, 1975. "Existence of an Exchange Equilibrium under Price Rigidities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 301-20, June.
- Carlos Alós-Ferrer, 2000. "Finite Population Dynamics and Mixed Equilibria," Vienna Economics Papers 0008, University of Vienna, Department of Economics.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Faias, Marta & Moreno-Garcia, Emma & Pascoa, Mario Rui, 2002. "Real indeterminacy of equilibria and manipulability," Journal of Mathematical Economics, Elsevier, vol. 37(4), pages 325-340, July.
- Carlos Alós-Ferrer & Ana Ania, 2005. "The evolutionary stability of perfectly competitive behavior," Economic Theory, Springer, vol. 26(3), pages 497-516, October.
- Plott, Charles R, 1982. "Industrial Organization Theory and Experimental Economics," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1485-1527, December.
- Mandel Antoine & Botta Nicola, 2009.
"A Note on Herbert Gintis' "Emergence of a Price System from Decentralized Bilateral Exchange","
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 9(1), pages 1-18, December.
- Antoine Mandel & Nicola Botta, 2009. "A note on Herbert Gintis' "Emergence of a Price System from Decentralized Bilateral Exchange"," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00634656, HAL.
- Khan Abhimanyu & Peeters Ronald, 2011. "Evolution of behavior when duopolists choose prices and quantities," Research Memoranda 027, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.