EconPapers    
Economics at your fingertips  
 

Decentralized trade, random utility and the evolution of social welfare

Oscar Volij (), Roberto Serrano () and Michihiro Kandori

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: We study decentralized trade processes in general exchange economies and house allocation problems with and without money. The processes are subject to persistent random shocks stemming from agents' maximization of random utility. By imposing structure on the utility noise term -logit distribution-, one is able to calculate exactly the stationary distribution of the perturbed Markov process for any level of noise. We show that the stationary distribution places the largest probability on the maximizers of weighted sums of the agents' (intrinsic) utilities, and this probability tends to 1 as noise vanishes

New Economics Papers: this item is included in nep-upt
Date: 2005-11
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://e-archivo.uc3m.es/bitstream/handle/10016/361/we056433.pdf?sequence=1 (application/pdf)

Related works:
Journal Article: Decentralized trade, random utility and the evolution of social welfare (2008) Downloads
Working Paper: Decentralized Trade, Random Utility and the Evolution of Social Welfare (2004) Downloads
Working Paper: Decentralized Trade, Random Utility and the Evolution of Social Welfare (2004) Downloads
Working Paper: Decentralized Trade, Random Utility and the Evolution of Social Welfare (2004) Downloads
Working Paper: Decentralized Trade, Random Utility and the Evolution of Social Welfare Downloads
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:cte:werepe:we056433

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().

 
Page updated 2019-12-04
Handle: RePEc:cte:werepe:we056433