| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 972623 | Mathematical Social Sciences | 2014 | 6 Pages |
Abstract
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 in 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.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Antoine Mandel, Herbert Gintis,