On convergence of contractual trajectories in pure exchange economies
The study is aimed to investigate the convergence to equilibrium of trajectories generated by contractual processes. “Contractual process” is a view on economy’s self-regulation, describing any state of exchange economy as a set of barter contracts among agents/coalitions. It is assumed that any moment of continuous time agents can partially break some contracts and sign more beneficial ones. Such reconstructing is called “benevolent”, when an agent/coalition breaks old contracts only when exhausting all other opportunities to increase welfare. Such processes are shown to con-verge to equilibrium under reasonable conditions, whereas non-benevolent processes need not converge, as shown by series of examples.
|Date of creation:||18 Dec 2006|
|Date of revision:|
|Contact details of provider:|| Postal: EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine|
Web page: http://www.eercnetwork.com
|Order Information:|| Postal: EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine|
Web: https://eercnetwork.com/paper Email:
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.:
- Takashi Kunimoto & Roberto Serrano, 2002.
"Bargaining and Competition Revisited,"
2002-14, Brown University, Department of Economics.
- Kamiya, Kazuya, 1990. "A Globally Stable Price Adjustment Process," Econometrica, Econometric Society, vol. 58(6), pages 1481-85, November.
- Mukherji, Anjan, 1995. "A Locally Stable Adjustment Process," Econometrica, Econometric Society, vol. 63(2), pages 441-48, March.
- Hurwicz, Leonid & Radner, Roy & Reiter, Stanley, 1975.
"A Stochastic Decentralized Resource Allocation Process: Part I,"
Econometric Society, vol. 43(2), pages 187-221, March.
- Hurwicz, Leonid & Radner, Roy & Reiter, Stanley, 1975. "A Stochastic Decentralized Resource Allocation Process: Part II," Econometrica, Econometric Society, vol. 43(3), pages 363-93, May.
- Marakulin Valery, 2003. "Contracts and domination in incomplete markets," EERC Working Paper Series 02-04e, EERC Research Network, Russia and CIS.
- Polterovich, Victor & Spivak, Vladimir, 1982.
"Отображения С Валовой Заменимостью В Теории Экономического Равновесия
[Gross Substitutability Mappings in Economic Equilibrium Theory]," MPRA Paper 21814, University Library of Munich, Germany.
- Saari, Donald G & Simon, Carl P, 1978. "Effective Price Mechanisms," Econometrica, Econometric Society, vol. 46(5), pages 1097-1125, September.
- Anjan Mukherji, 2003. "Competitive Equilibria: Convergence, Cycles or Chaos," ISER Discussion Paper 0591, Institute of Social and Economic Research, Osaka University.
- Graham, Daniel A. & Peter Jennergren, L. & Peterson, David W. & Roy Weintraub, E., 1976. "Trader-commodity parity theorems," Journal of Economic Theory, Elsevier, vol. 12(3), pages 443-454, June.
- Jordan, J. S., 1983. "Locally stable price mechanisms," Journal of Mathematical Economics, Elsevier, vol. 11(3), pages 235-259, July.
- Paul J. Madden, 1975. "Efficient Sequences of Non-Monetary Exchange," Review of Economic Studies, Oxford University Press, vol. 42(4), pages 581-596.
- Daniel A. Graham & E. Roy Weintraub, 1975. "On Convergence to Pareto Allocations," Review of Economic Studies, Oxford University Press, vol. 42(3), pages 469-472.
- Mukherji, Anjan, 1974. "The Edgeworth-Uzawa Barter Stabilizes Prices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 236-41, February.
When requesting a correction, please mention this item's handle: RePEc:eer:wpalle:06-07e. 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: (Anton Pashchenko)
If references are entirely missing, you can add them using this form.