Stochastic stability in the Scarf economy

Antoine Mandel and Herbert Gintis

Mathematical Social Sciences, 2014, vol. 67, issue C, 44-49

Abstract: 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.

Date: 2014
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Stochastic Stability in the Scarf Economy (2014)
Working Paper: Stochastic Stability in the Scarf Economy (2014)
Working Paper: Stochastic Stability in the Scarf Economy (2014)
Working Paper: Stochastic stability in the Scarf economy (2013)
Working Paper: Stochastic stability in the Scarf economy (2012)
Working Paper: Stochastic stability in the Scarf economy (2012)
Working Paper: Stochastic stability in the Scarf economy (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:67:y:2014:i:c:p:44-49

DOI: 10.1016/j.mathsocsci.2013.09.002

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