Markets, Correlation, and Regret-Matching
Inspired by the existing work on correlated equilibria and regret-based dynamics in games, we carry out a first exploration of the links between equilibria and dynamics in (exchange) economies. The leading equilibrium concept is Walrasian equilibrium, and the dynamics (specifically, regret-matching dynamics) apply to trading games that fit the economic structure and whose pure Nash equilibria implement the Walrasian outcomes. Interestingly, in the case of quasilinear utilities (or “transferable utility”), all the concepts essentially coincide, and we get simple deterministic dynamics converging to Walrasian outcomes. Connections to sunspot equilibria are also studied.
(This abstract was borrowed from another version of this item.)
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.:
- Schmeidler, David, 1980. "Walrasian Analysis via Strategic Outcome Functions," Econometrica, Econometric Society, vol. 48(7), pages 1585-93, November.
- Sergiu Hart & Andreu Mas-Colell, 1999.
"A General Class of Adaptive Strategies,"
Game Theory and Information
9904001, EconWPA, revised 23 Mar 2000.
- AUMANN, Robert J., .
"Subjectivity and correlation in randomized strategies,"
CORE Discussion Papers RP
167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Aumann, Robert J., 1974. "Subjectivity and correlation in randomized strategies," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 67-96, March.
- R. Aumann, 2010. "Subjectivity and Correlation in Randomized Strategies," Levine's Working Paper Archive 389, David K. Levine.
- S. Hart & A. Mas-Collel, 2010.
"A Simple Adaptive Procedure Leading to Correlated Equilibrium,"
Levine's Working Paper Archive
572, David K. Levine.
- Sergiu Hart & Andreu Mas-Colell, 2000. "A Simple Adaptive Procedure Leading to Correlated Equilibrium," Econometrica, Econometric Society, vol. 68(5), pages 1127-1150, September.
- Sergiu Hart & Andreu Mas-Colell, 1996. "A simple adaptive procedure leading to correlated equilibrium," Economics Working Papers 200, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 1996.
- Sergiu Hart & Andreu Mas-Colell, 1997. "A Simple Adaptive Procedure Leading to Correlated Equilibrium," Game Theory and Information 9703006, EconWPA, revised 24 Mar 1997.
- L. Hurwicz, 1979. "Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 217-225.
- Sergiu Hart & Andreu Mas-Colell, 2001.
"Regret-Based Continuous-Time Dynamics,"
Discussion Paper Series
dp309, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem, revised Apr 2003.
- Hart, Oliver D., 1974. "On the existence of equilibrium in a securities model," Journal of Economic Theory, Elsevier, vol. 9(3), pages 293-311, November.
- Forges, F., 1991.
"Correlated equilibrium and sunspot equilibrium,"
CORE Discussion Papers
1991053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Indrajit Ray & Herakles Polemarchakis, 2004.
"Sunspots, Correlation And Competition,"
Royal Economic Society Annual Conference 2004
89, Royal Economic Society.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, December.
- Young, H. Peyton, 2004. "Strategic Learning and its Limits," OUP Catalogue, Oxford University Press, number 9780199269181, December.
- Maskin, Eric & Tirole, Jean, 1987. "Correlated equilibria and sunspots," Journal of Economic Theory, Elsevier, vol. 43(2), pages 364-373, December.
When requesting a correction, please mention this item's handle: RePEc:cla:levarc:786969000000000814. 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: (David K. Levine)
If references are entirely missing, you can add them using this form.