IDEAS home Printed from https://ideas.repec.org/p/ucr/wpaper/201508.html
   My bibliography  Save this paper

Existence and Stability of Dynamic Exchange Equilibria

Author

Listed:
  • Craig McLaren

    (Department of Economics, University of California Riverside)

Abstract

Economic general equilibrium results when the forces of supply and demand bring market participants into agreement as to the prices at which good should sell, and the quantities that should be sold. While it has been shown mathematically, that such exchange prices and quantities can be simultaneously determined for all goods in an economy, a mechanism that describes how such equilibria are achieved in practice has never been proposed. This paper demonstrates that such equilibria result naturally from the dynamic interaction of market participants. The dynamic interaction modeled in this paper can be used to study the interaction of demographic groups, which drives the evolution of a community. This model should also be useful in studying the effects of public policy and other external factors on markets.

Suggested Citation

  • Craig McLaren, 2015. "Existence and Stability of Dynamic Exchange Equilibria," Working Papers 201508, University of California at Riverside, Department of Economics.
    • Handle: RePEc:ucr:wpaper:201508
    as

    Download full text from publisher

    File URL: https://economics.ucr.edu/repec/ucr/wpaper/201508.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Craig McLaren, 2015. "Dynamic Model of the Individual Consumer," Working Papers 201507, University of California at Riverside, Department of Economics.
    2. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    Full references (including those not matched with items on IDEAS)

    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. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    2. Jolian McHardy & Michael Reynolds & Stephen Trotter, 2012. "The Stackelberg Model as a Partial Solution to the Problem of Pricing in a Network," Working Paper series 19_12, Rimini Centre for Economic Analysis.
    3. Gregory Casey & Ryo Horii, 2024. "A Generalized Uzawa Growth Theorem," Journal of Political Economy Macroeconomics, University of Chicago Press, vol. 2(2), pages 336-373.
    4. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    5. Kazuhiro Kurose, 2023. "The microfoundations of evolutionary economics and its future: an essay based on the SMT approach," Evolutionary and Institutional Economics Review, Springer, vol. 20(2), pages 457-481, September.
    6. Pizer, William A. & Kopp, Raymond, 2005. "Calculating the Costs of Environmental Regulation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 25, pages 1307-1351, Elsevier.
    7. Ho Geun Jang & Satoshi Yamazaki & Eriko Hoshino, 2019. "Profit and equity trade‐offs in the management of small pelagic fisheries: the case of the Japanese sardine fishery," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), pages 549-574, July.
    8. Houba, Harold & van der Laan, Gerard & Zeng, Yuyu, 2014. "Asymmetric Nash Solutions in the River Sharing Problem," Strategic Behavior and the Environment, now publishers, vol. 4(4), pages 321-360, December.
    9. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
    10. Mackowiak, Piotr, 2010. "The existence of equilibrium without fixed-point arguments," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1194-1199, November.
    11. Vadim Borokhov, 2014. "On the properties of nodal price response matrix in electricity markets," Papers 1404.3678, arXiv.org, revised Jan 2015.
    12. Yuzhou Jiang & Ramteen Sioshansi, 2023. "What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage," The Energy Journal, , vol. 44(3), pages 89-110, May.
    13. Daniel Sutter & Daniel J. Smith, 2017. "Coordination in disaster: Nonprice learning and the allocation of resources after natural disasters," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(4), pages 469-492, December.
    14. Aad Ruiter, 2020. "Approximating Walrasian Equilibria," Computational Economics, Springer;Society for Computational Economics, vol. 55(2), pages 577-596, February.
    15. Martin Dlouhý & Pavel Havlík, 2024. "Efficiency evaluation of 28 health systems by MCDA and DEA," Health Economics Review, Springer, vol. 14(1), pages 1-14, December.
    16. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 375-408, June.
    17. Arnott, Richard & Hochman, Oded & Rausser, Gordon C., 2008. "Pollution and land use: Optimum and decentralization," Journal of Urban Economics, Elsevier, vol. 64(2), pages 390-407, September.
    18. Dirk Bergemann & Stephen Morris, 2019. "Information Design: A Unified Perspective," Journal of Economic Literature, American Economic Association, vol. 57(1), pages 44-95, March.
    19. David Wilson & John Gowdy, 2015. "Human ultrasociality and the invisible hand: foundational developments in evolutionary science alter a foundational concept in economics," Journal of Bioeconomics, Springer, vol. 17(1), pages 37-52, April.
    20. Wei-Bin Zhang, 2015. "A Portfolio Equilibrium Model of Gold and Capital in an Integrated Walrasian General Equilibrium and Neoclassical Growth Theory," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(12), pages 616-627, December.

    More about this item

    Keywords

    Dynamic General General Equalibrium; Existence; Stability; Dynamic Tatonnement;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

    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:ucr:wpaper:201508. See general information about how to correct material in RePEc.

    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: Kelvin Mac (email available below). General contact details of provider: https://edirc.repec.org/data/deucrus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.