Nash equilibria applied to Spot-financial equilibria in General equilibrium incomplete market models
We consider a two period pure exchange economy with a finite number of states of nature at the second date. The economy consists of a real asset structure and a finite set of durable goods in the initial period that depreciate; we suppose that there is only one single good available in each state of nature at the second date. In this paper, we demonstrate that the spot-financial equilibrium can be obtained as a Nash equilibrium of a market game in which the strategies of the players consist in suggesting prices and quantities for both goods and assets.
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"From Nash to Walras via Shapley-Shubik,"
Journal of Mathematical Economics,
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