A note on Herbert Gintis’ “Emergence of a Price System from Decentralized Bilateral Exchange ”
نویسندگان
چکیده
In two recent contributions, Herbert Gintis introduces agent-based imitation models built upon evolutionary bargaining games where agents use private prices as strategies. He reports surprising convergence results for simulations performed in exchange economies where goods are strict complement. We investigate analytically these results using the notion of stochastic stability.
منابع مشابه
The Emergence of a Price System from Decentralized Bilateral Exchange
This paper derives the price system in a model of decentralized bilateral exchange. Out of equilibrium, prices are individual subjective estimates of payoff-maximizing exchange ratios, and hence are the private information of individual agents. We show that a system of public prices emerges in the long run, and these public prices are equilibria of the underlying general equilibrium model. We t...
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