IDEAS home Printed from https://ideas.repec.org/p/cwl/cwldpp/1729.html
   My bibliography  Save this paper

Marshallian Money, Welfare, and Side-Payments

Author

Listed:

Abstract

A 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.

Suggested Citation

  • Chen-Zhong Qin & Lloyd S. Shapley & Martin Shubik, 2009. "Marshallian Money, Welfare, and Side-Payments," Cowles Foundation Discussion Papers 1729, Cowles Foundation for Research in Economics, Yale University.
  • Handle: RePEc:cwl:cwldpp:1729
    as

    Download full text from publisher

    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d17/d1729.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Martin Shubik, 2000. "The Theory of Money," Working Papers 00-03-021, Santa Fe Institute.
    3. 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 873-875, August.
    4. 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.
    5. Shubik, Martin, 1971. "Pecuniary Externalities: A Game Theoretic Analysis," American Economic Review, American Economic Association, vol. 61(4), pages 713-718, September.
    6. Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June.
    7. Gerard Debreu, 1963. "On a Theorem of Scarf," Review of Economic Studies, Oxford University Press, vol. 30(3), pages 177-180.
    8. Per Bak & Simon F. Norrelykke & Martin Shubik, 1998. "The Dynamics of Money," Research in Economics 98-11-102e, Santa Fe Institute.
    9. 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.
    10. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    11. Martin Shubik, 2004. "The Edgeworth, Cournot and Walrasian Cores," Yale School of Management Working Papers ysm433, Yale School of Management.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Odd Godal & Bjart Holtsmark, 2010. "International emissions trading with endogenous taxes," Discussion Papers 626, Statistics Norway, Research Department.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wooders, Myrna, 2008. "Market games and clubs," MPRA Paper 33968, University Library of Munich, Germany, revised Dec 2010.
    2. Juergen Huber & Martin Shubik & Shyam Sunder, 2009. "Default Penalty as a Disciplinary and Selection Mechanism in Presence of Multiple Equilibria," Cowles Foundation Discussion Papers 1730, Cowles Foundation for Research in Economics, Yale University.
    3. Martin Shubik, 1984. "The Cooperative Form, the Value and the Allocation of Joint Costs and Benefits," Cowles Foundation Discussion Papers 706, Cowles Foundation for Research in Economics, Yale University.
    4. Sun, Ning & Trockel, Walter & Yang, Zaifu, 2008. "Competitive outcomes and endogenous coalition formation in an n-person game," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 853-860, July.
    5. 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.
    6. Maria-Augusta Miceli & Federico Cecconi & Giovanni Cerulli, 2013. "Walrasian Tatonnement by Sequential Pairwise Trading: Convergence and Welfare Implications," Working Papers in Public Economics 161, University of Rome La Sapienza, Department of Economics and Law.
    7. Martin Shubik & Myrna Holtz Wooders, 1982. "Approximate Cores of a General Class of Economies: Part II. Set-Up Costs and Firm Formation in Coalition Production Economies," Cowles Foundation Discussion Papers 619, Cowles Foundation for Research in Economics, Yale University.
    8. Meseguer-Artola, Antoni & Wooders, Myrna Holtz & Martinez-Legaz, Juan-Enrique, 2003. "Representing Games As Coalition Production Economies With Public Goods," The Warwick Economics Research Paper Series (TWERPS) 669, University of Warwick, Department of Economics.
    9. Vind, Karl, 1995. "Perfect competition or the core," European Economic Review, Elsevier, vol. 39(9), pages 1733-1745, December.
    10. Martin Shubik, 2001. "Money and the Monetization of Credit," Cowles Foundation Discussion Papers 1343, Cowles Foundation for Research in Economics, Yale University.
    11. Cheng-Zhong Qin & Martin Shubik, 2012. "Selecting a unique competitive equilibrium with default penalties," Journal of Economics, Springer, vol. 106(2), pages 119-132, June.
    12. Westerink-Duijzer, L.E. & Schlicher, L.P.J. & Musegaas, M., 2019. "Fair allocations for cooperation problems in vaccination," Econometric Institute Research Papers EI2019-06, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    13. S. Flåm & L. Koutsougeras, 2010. "Private information, transferable utility, and the core," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 42(3), pages 591-609, March.
    14. Martin Shubik, 2011. "The Present and Future of Game Theory," Levine's Working Paper Archive 786969000000000173, David K. Levine.
    15. Wooders, Myrna H., 2001. "Some corrections to claims about the literature in Engl and Scotchmer (1996)," Journal of Mathematical Economics, Elsevier, vol. 36(4), pages 295-309, December.
    16. Inoue, Tomoki, 2012. "Representation of transferable utility games by coalition production economies," Journal of Mathematical Economics, Elsevier, vol. 48(3), pages 143-147.
    17. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
    18. Inoue, Tomoki, 2011. "Representation of TU games by coalition production economies," Center for Mathematical Economics Working Papers 430, Center for Mathematical Economics, Bielefeld University.
    19. Hervés-Beloso, Carlos & Moreno-García, Emma, 2009. "Walrasian analysis via two-player games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 220-233, January.
    20. Kumar, Alok & Shubik, Martin, 2003. "A computational analysis of core convergence in a multiple equilibria economy," Games and Economic Behavior, Elsevier, vol. 42(2), pages 253-266, February.

    More about this item

    Keywords

    delta-core; enough money; market games;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:1729. 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: . General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Matthew Regan (email available below). General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.