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Stochastic Stability in the Scarf Economy

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.
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Contributor : Antoine Mandel Connect in order to contact the contributor
Submitted on : Friday, April 11, 2014 - 12:08:07 PM
Last modification on : Friday, April 29, 2022 - 10:13:02 AM

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Antoine Mandel, Herbert Gintis. Stochastic Stability in the Scarf Economy. Mathematical Social Sciences, Elsevier, 2014, 67, pp.44-49. ⟨10.1016/j.mathsocsci.2013.09.002⟩. ⟨halshs-00977572⟩



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