Display Abstract

Title Convergence of Edgeworthian prices in a random matching economy

Name Bruno Oliveira
Country Portugal
Email bmpmo@fcna.up.pt
Co-Author(s) Bruno M.P. M. Oliveira, Alberto A. Pinto, Athanassios Yannacopoulos, Barbel Finkenstadt
Submit Time 2014-02-09 16:04:31
Session
Special Session 84: Dynamics and games
Contents
We study a random matching economy, where pairs of participants trade two goods. We show that under some fairly general and easy to check symmetry conditions, depending on the initial distribution of endowments and the agents preferences, the sequence of Edgeworthian prices in this economy converges to the Walrasian prices for this economy. Additionally, we associate a selfishness factor to each participant in this market. this brings up a game alike the prisoner's dilemma, where trade may occur in a different point in the core or may not even be allowed. We discuss how the selfishness affects the sequence of Edgeworthian prices.