Marshallian Money, Welfare, and Side-Payments
AbstractA link between a no-side-payment (NSP) market game and a side-payment (SP) market game can be established by introducing a sufficient amount of an ideal utility-money of constant marginal utility to all agents. At some point when there is "enough money" in the system, if it is "well distributed" the new game will be a SP game. This game can also be related to a pure NSP game where a set of default parameters have been introduced. These parameters play a role similar to the parameters specifying the interpersonal comparisons in the side-payment game. We study this game for the properties of the delta-core and consider both the conditions for the uniqueness of competitive equilibria and a new approach to the second welfare theorem. A discussion of the relationship between market games and strategic market games is also noted.
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 Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1729.
Length: 26 pages
Date of creation: Sep 2009
Date of revision:
Contact details of provider:
Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA
Phone: (203) 432-3702
Fax: (203) 432-6167
Web page: http://cowles.econ.yale.edu/
More information through EDIRC
Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-17 (All new papers)
- NEP-GTH-2009-10-17 (Game Theory)
- NEP-MIC-2009-10-17 (Microeconomics)
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.:
- Shapley, Lloyd S & Shubik, Martin, 1977. "An Example of a Trading Economy with Three Competitive Equilibria," Journal of Political Economy, University of Chicago Press, vol. 85(4), pages 873-75, August.
- Per Bak & Simon F. Norrelykke & Martin Shubik, 1998.
"The Dynamics of Money,"
Research in Economics
98-11-102e, Santa Fe Institute.
- Scarf, Herbert E., 1971.
"On the existence of a coopertive solution for a general class of N-person games,"
Journal of Economic Theory,
Elsevier, vol. 3(2), pages 169-181, June.
- Herbert E. Scarf, 1970. "On the Existence of a Cooperative Solution for a General Class of N-Person Games," Cowles Foundation Discussion Papers 293, Cowles Foundation for Research in Economics, Yale University.
- Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
- Qin, Cheng-Zhong & Shapley, Lloyd S & Shimomura, Ken-Ichi, 2004.
"The Walras Core of an Economy and Its Limit Theorem,"
University of California at Santa Barbara, Economics Working Paper Series
qt6hp534w3, Department of Economics, UC Santa Barbara.
- Qin, Cheng-Zhong & Shapley, Lloyd S. & Shimomura, Ken-Ichi, 2006. "The Walras core of an economy and its limit theorem," Journal of Mathematical Economics, Elsevier, vol. 42(2), pages 180-197, April.
- Martin Shubik, 1970.
"Pecuniary Externalities: A Game Theoretic Analysis,"
Cowles Foundation Discussion Papers
288, Cowles Foundation for Research in Economics, Yale University.
- Shubik, Martin, 1971. "Pecuniary Externalities: A Game Theoretic Analysis," American Economic Review, American Economic Association, vol. 61(4), pages 713-18, September.
- Martin Shubik, 2000.
"The Theory of Money,"
00-03-021, Santa Fe Institute.
- Martin Shubik, 2003. "The Edgeworth, Cournot and Walrasian Cores of an Economy," Cowles Foundation Discussion Papers 1439, Cowles Foundation for Research in Economics, Yale University.
- Cheng-Zhong Qin & Martin Shubik, 2005.
"A Credit Mechanism for Selecting a Unique Competitive Equilibrium,"
Cowles Foundation Discussion Papers
1539, Cowles Foundation for Research in Economics, Yale University, revised Nov 2006.
- Cheng-Zhong Qin & Martin Shubik, 2005. "A Credit Mechanism for Selecting a Unique Competitive Equilibrium," Cowles Foundation Discussion Papers 1539R, Cowles Foundation for Research in Economics, Yale University, revised Jun 2009.
- Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Glena Ames).
If references are entirely missing, you can add them using this form.