Stochastic stability in the Scarf economy

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Stochastic stability in the Scarf economy

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, see [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 o...

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ژورنال

عنوان ژورنال: Mathematical Social Sciences

سال: 2014

ISSN: 0165-4896

DOI: 10.1016/j.mathsocsci.2013.09.002