Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7382002 | Physica A: Statistical Mechanics and its Applications | 2014 | 6 Pages |
Abstract
This article aims at a new approach for a known fundamental result: barter or trade increases economic value. It successfully bridges the gap between the theory of value and the exchange process attached to the transition from endowments to the equilibrium in the core and contract curve. First, we summarise the theory of value; in Section 2, we present the Edgeworth (1881) box and an axiomatic approach and in Section 3, we apply our pure exchange model. Finally (in Section 4), using our open econo-physics pure barter (EPB) model, we derive an improvement in value, which means that pure barter leads to a decline in depreciation rate.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
Rui F. Marmont Lobo, Miguel Rocha de Sousa,