Stochastic stability in the Scarf economy
We present a mathematical model for the analysis of the bargaining games based on private prices used by Gintis to simulate the dynamics of prices in exchange economies, see [Gintis 2007]. We then characterize, in the Scarf economy, a class of dynamics for which the Walrasian equilibrium is the only stochastically stable state. Hence, we provide dynamic foundations for general equilibrium for one of the best-known example of instability of the tâtonement process.
|Date of creation:||Oct 2012|
|Date of revision:|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00748328|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- Antoine Mandel & Nicola Botta, 2009.
"A note on Herbert Gintis' "Emergence of a Price System from Decentralized Bilateral Exchange","
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Mandel Antoine & Botta Nicola, 2009. "A Note on Herbert Gintis' "Emergence of a Price System from Decentralized Bilateral Exchange"," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 9(1), pages 1-18, December.
- Alok Kumar & Martin Shubik, 2001.
"Variations on the Theme of Scarf's Counter-Example,"
01-12-074, Santa Fe Institute.
- Alok Kumar & Martin Shubik, 2004. "Variations on the Theme of Scarf's Counter-Example," Computational Economics, Society for Computational Economics, vol. 24(1), pages 1-19, 08.
- Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, vol. 67(1), pages 17-45, January.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Arkit, Aleksandra, 2003. "Globally stable price dynamics," Journal of Mathematical Economics, Elsevier, vol. 39(1-2), pages 27-38, February.
- Fernando Vega Redondo, 1996.
"The evolution of walrasian behavior,"
Working Papers. Serie AD
1996-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Scarf, Herbert, 1969. "An Example of an Algorithm for Calculating General Equilibrium Prices," American Economic Review, American Economic Association, vol. 59(4), pages 669-77, Part I Se.
- Fudenberg, Drew & Harris, Christopher, 1992.
"Evolutionary Dynamics with Aggregate Shocks,"
IDEI Working Papers
13, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jean-Jacques Herings, P., 1997.
"A globally and universally stable price adjustment process,"
Journal of Mathematical Economics,
Elsevier, vol. 27(2), pages 163-193, March.
- Herings, P.J.J., 1994. "A globally and universally stable price adjustment process," Discussion Paper 1994-52, Tilburg University, Center for Economic Research.
- Sean Crockett, 2013. "Price Dynamics In General Equilibrium Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 421-438, 07.
- Ghosal, Sayantan & Porter, James, 2013. "Decentralised exchange, out-of-equilibrium dynamics and convergence to efficiency," Mathematical Social Sciences, Elsevier, vol. 66(1), pages 1-21.
- Bottazzi, Jean-Marc, 1994. "Accessibility of Pareto optima by Walrasian exchange processes," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 585-603, November.
- Scarf, Herbert, 1981. "Comment on: "On the Stability of Competitive Equilibrium and the Patterns of Initial Holdings: An Example"," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 469-70, June.
- Roberto Serrano & Oscar Volij, 2005.
"Mistakes In Cooperation: The Stochastic Stability Of Edgeworth'S Recontracting,"
Economics Working Papers
we056332, Universidad Carlos III, 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.
- Sonnenschein, Hugo, 1973. "Do Walras' identity and continuity characterize the class of community excess demand functions?," Journal of Economic Theory, Elsevier, vol. 6(4), pages 345-354, August.
- Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-18, May.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Giraud, Gael, 2003. "Strategic market games: an introduction," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 355-375, July.
- Schecter, Stephen, 1977. "Accessibility of optima in pure exchange economies," Journal of Mathematical Economics, Elsevier, vol. 4(3), pages 197-216, December.
- Herbert Gintis, 2007. "The Dynamics of General Equilibrium," Economic Journal, Royal Economic Society, vol. 117(523), pages 1280-1309, October.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00748328. 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: (CCSD)
If references are entirely missing, you can add them using this form.