A dynamic recontracting process for multiple-type housing markets
Abstract We consider multiple-type housing markets. To capture the dynamic aspect of trade in such markets, we study a dynamic recontracting process similar to the one introduced by Serrano and Volij (2008). First, we analyze the set of recurrent classes of this process as a (non-empty) solution concept. We show that each core allocation always constitutes a singleton recurrent class and provide examples of non-singleton recurrent classes consisting of blocking-cycles of individually rational allocations. For multiple-type housing markets stochastic stability never serves as a selection device among recurrent classes. Next, we propose a method to compute the limit invariant distribution of the dynamic recontracting process. Furthermore, we discuss how the limit invariant distribution is influenced by the relative coalitional stability and accessibility of the different stochastically stable allocations. We illustrate our findings with several examples. In particular, we demonstrate that some core allocations are less likely to be final allocations of the dynamic process than cycles composed of non-core allocations.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Volij, Oscar & Serrano, Roberto, 2005.
"Mistakes in cooperation: the stochastic stability of edgeworth's recontracting,"
UC3M Working papers. Economics
we056332, Universidad Carlos III de Madrid. Departamento de Economía.
- Roberto Serrano & Oscar Volij, 2008. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economic Journal, Royal Economic Society, vol. 118(532), pages 1719-1741, October.
- Roberto Serrano & Oscar Volij, 2003. "MISTAKE IN COOPERATION:the Stochastic Stability of Edgeworth's Recontracting," Working Papers 2003-23, Brown University, Department of Economics.
- Roberto Serrano & Oscar Volij, 2003. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economics Working Papers 0029, Institute for Advanced Study, School of Social Science.
- Kawasaki, Ryo, 2010. "Farsighted stability of the competitive allocations in an exchange economy with indivisible goods," Mathematical Social Sciences, Elsevier, vol. 59(1), pages 46-52, January.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- P. Young, 1999. "The Evolution of Conventions," Levine's Working Paper Archive 485, David K. Levine.
- Klaus, Bettina & Bochet, Olivier & Walzl, Markus, 2011.
"A dynamic recontracting process for multiple-type housing markets,"
Journal of Mathematical Economics,
Elsevier, vol. 47(1), pages 84-98, January.
- Bettina Klaus & Olivier Bochet & Markus Walzl, 2010. "A Dynamic Recontracting Process for Multiple-Type Housing Markets," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 10.02, Université de Lausanne, Faculté des HEC, DEEP.
- Feldman, Allan M, 1974. "Recontracting Stability," Econometrica, Econometric Society, vol. 42(1), pages 35-44, January.
- Jackson, Matthew O., 1998.
"The Evolution of Social and Economic Networks,"
1044, California Institute of Technology, Division of the Humanities and Social Sciences.
- Agastya, Murali, 2003.
"Stochastic Stability In A Double Auction,"
5, University of Sydney, School of Economics.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
- Neuefeind, Wilhelm, 1974. "A stochastic bargaining process for n-person games," Journal of Mathematical Economics, Elsevier, vol. 1(2), pages 175-191, August.
- Roth, Alvin E. & Postlewaite, Andrew, 1977. "Weak versus strong domination in a market with indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 4(2), pages 131-137, August.
- Klaus, Bettina, 2008.
"The coordinate-wise core for multiple-type housing markets is second-best incentive compatible,"
Journal of Mathematical Economics,
Elsevier, vol. 44(9-10), pages 919-924, September.
- Klaus,Bettina, 2005. "The Coordinate-Wise Core for Multiple-Type Housing Markets is Second-Best Incentive Compatible," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Binmore, Ken & Samuelson, Larry & Young, Peyton, 2003. "Equilibrium selection in bargaining models," Games and Economic Behavior, Elsevier, vol. 45(2), pages 296-328, November.
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:47:y:2011:i:1:p:84-98. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.