EconPapers    
Economics at your fingertips  
 

When Walras meets Vickrey

David Delacrétaz (), Simon Loertscher and Claudio Mezzetti
Additional contact information
David Delacrétaz: Department of Economics, University of Manchester

Theoretical Economics, 2022, vol. 17, issue 4

Abstract: We consider general asset market environments in which agents with quasilinear payoffs are endowed with objects and have demands for other agents' objects. We show that if all agents have a maximum demand of one object and are endowed with at most one object, the VCG transfer of each agent is equal to the largest net Walrasian price of this agent. Consequently, the VCG deficit is equal to the sum of the largest net Walrasian prices over all agents. Generally, whenever Walrasian prices exist, the sum of the largest net Walrasian prices is a non-negative lower bound for the deficit, implying that no dominant-strategy mechanism runs a budget surplus while respecting agents' ex post individual rationality constraints.

Keywords: Asset markets; efficient trade; VCG deficit; largest net Walrasian prices (search for similar items in EconPapers)
JEL-codes: C72 D44 D47 D61 (search for similar items in EconPapers)
Date: 2022-11-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20221803/35315/1048 (application/pdf)

Related works:
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:the:publsh:4296

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().

 
Page updated 2025-03-22
Handle: RePEc:the:publsh:4296