Stochastic Stability in the Scarf Economy

Article dans une revue: 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.

Auteur(s)

Antoine Mandel, Herbert Gintis

Revue
  • Mathematical Social Sciences
Date de publication
  • 2014
Mots-clés
  • Stochastic Stability
  • General Equilibrium
Pages
  • 44-49
Version
  • 1
Volume
  • 67