Competitive pricing and the core: With reference to matching

Joseph M. Ostroy

Games and Economic Behavior, 2018, vol. 108, issue C, 558-573

Abstract: Lloyd Shapley's contributions with respect to the core are interpreted as subdifferentiability characterizations of the pricing of individuals that is similar to the pricing of commodities in economic models of exchange with transferable utility. Differentiability of the core is interpreted as perfect substitutability with respect to the pricing of individuals. Differentiability implies, but is not implied by, equivalence of the core and Walrasian equilibria. Differentiability eliminates opportunities for strategic misrepresentation of utilities. The assignment model with transferable utility is framed in the setting of exchange economies and its individual and commodity pricing is extended to non-transferable utility.

Keywords: Subdifferential; Core; Market game; Assignment model; Walrasian equilibrium; Perfect substitutability (search for similar items in EconPapers)
JEL-codes: C71 C78 D51 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:108:y:2018:i:c:p:558-573

DOI: 10.1016/j.geb.2018.01.011

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