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Walras Retrouve: Decentralized Trading Mechanisms and the Competitive Price Author info | Abstract | Publisher info | Download info | Related research | Statistics Gianni De Fraja
Jozsef Sakovics ()
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In this paper we extend the standard matching analysis of decentralized markets allowing for the possibility that some traders are matched to more than one trader on the opposite side of the market. In contrast to the literature, we are able to reconcile the Walrasian equilibrium with the outcome of decentralized strategic trade: we show that there exist matching mechanisms which determine local market conditions such that the equilibrium price and quantities are the same as would result in the Walrasian global market.
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Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number
36.
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Date of creation: Apr 2004Date of revision:
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Keywords: Decentralised markets ; Price formation ; Walrasian equilibrium ; Other versions of this item:
This paper has been announced in the following NEP Reports :
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