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Decentralized Trading Networks: Equilibria and Fairness

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  • Simon Finster
  • Paul W. Goldberg
  • Edwin Lock
  • Matilde Tullii

Abstract

We explore stability and fairness considerations in decentralized networked markets with bilateral contracts, building on the trading networks framework [Hatfield et al., 2013]. In our trading network game, we show that a well-defined subset of Nash equilibria can be supported as competitive equilibria. Considering an offer-based trading dynamic as well as a stochastic price clock market, we prove new convergence results to Nash equilibrium and competitive equilibrium, providing a rationale for stability properties in decentralized, dynamic trading networks. Turning to the tension between fairness and (core) stability, we prove several negative results: inessential agents always receive zero utility in any core outcome, and even essential agents can get zero utility in all core outcomes.

Suggested Citation

  • Simon Finster & Paul W. Goldberg & Edwin Lock & Matilde Tullii, 2026. "Decentralized Trading Networks: Equilibria and Fairness," Papers 2602.20868, arXiv.org.
    • Handle: RePEc:arx:papers:2602.20868
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