The Complexity of Exchange
Robert Axtell
Economic Journal, 2005, vol. 115, issue 504, F193-F210
Abstract:
The computational complexity of two classes of market mechanisms is compared. First the Walrasian interpretation in which prices are centrally computed by an auctioneer. Recent results on the "computational complexity" are reviewed. The "non"-"polynomial complexity" of these algorithms makes Walrasian general equilibrium an "implausible" conception. Second, a "decentralised" picture of market processes is described, involving concurrent exchange within transient coalitions of agents. These processes feature "price dispersion", yield allocations that are "not in the core", modify the "distribution of wealth", are always "stable", but "path"-"dependent." Replacing the Walrasian framing of markets requires substantial revision of conventional wisdom concerning markets. Copyright 2005 Royal Economic Society.
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (54)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: The Complexity of Exchange (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:115:y:2005:i:504:p:f193-f210
Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133
Access Statistics for this article
Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen
More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().