Stable processes of exchange

Stanley Reiter; Spiro Maroulis

doi:10.1016/j.jmateco.2008.07.012

Stable processes of exchange

Stanley Reiter, Spiro Maroulis

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

In this paper we address a long standing gap in economic theory-the gap between claims for the dynamic efficiency of trading in markets, and the findings of formal economic theory, which justify those claims only under restrictive assumptions. We use agent-based methods to study the dynamics of exchange with trading agents who are characterized by several different preference relations. We see that outcomes converge with high probability to Pareto optima in the cases studied, including the well-known example due to Scarf.

Original language	English (US)
Pages (from-to)	1398-1412
Number of pages	15
Journal	Journal of Mathematical Economics
Volume	44
Issue number	12
DOIs	https://doi.org/10.1016/j.jmateco.2008.07.012
State	Published - Dec 20 2008
Externally published	Yes

Keywords

Agent-based modeling
General equilibrium

ASJC Scopus subject areas

Economics and Econometrics
Applied Mathematics

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10.1016/j.jmateco.2008.07.012

Cite this

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AB - In this paper we address a long standing gap in economic theory-the gap between claims for the dynamic efficiency of trading in markets, and the findings of formal economic theory, which justify those claims only under restrictive assumptions. We use agent-based methods to study the dynamics of exchange with trading agents who are characterized by several different preference relations. We see that outcomes converge with high probability to Pareto optima in the cases studied, including the well-known example due to Scarf.

KW - Agent-based modeling

KW - General equilibrium

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ER -

Stable processes of exchange

Abstract

Keywords

ASJC Scopus subject areas

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