Startseite The Emergence of a Price System from Decentralized Bilateral Exchange
Artikel
Lizenziert
Nicht lizenziert Erfordert eine Authentifizierung

The Emergence of a Price System from Decentralized Bilateral Exchange

  • Herbert Gintis
Veröffentlicht/Copyright: 17. Dezember 2006

This paper analyzes the dynamics of completely decentralized bilateral exchange. In such a framework, neither money nor prices as public information exist. Rather, prices represent an agent's barter strategy, and hence are private information. We call these private prices. Agents formulate trade offers and accept or reject offers from other traders, on the basis of their private prices. Private prices are updated by low-scoring agents periodically imitating the strategies of higher-scoring agents. We show that a system of quasi-public prices emerges in the medium run, and these quasi-public prices converge to stationary distributions that are approximately competitive equilibria of the underlying Walrasian model in the long run. We thus provide, for the first time, a general, decentralized disequilibrium adjustment mechanism that renders market equilibrium dynamically stable in a highly simplified production and exchange economy.

Published Online: 2006-12-17

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

Artikel in diesem Heft

  1. Advances Article
  2. Evolutionary Dynamics and Long-Run Selection
  3. Party Competition under Private and Public Financing: A Comparison of Institutions
  4. Limited Observation in Mutual Consent Networks
  5. Status Concerns and Occupational Choice Under Uncertainty
  6. Choice under Limited Uncertainty
  7. A Vague Theory of Choice over Time
  8. Strategic Implications of Uncertainty over One's Own Private Value in Auctions
  9. Contributions Article
  10. Snobs and Quality Gaps
  11. General Option Exercise Rules, with Applications to Embedded Options and Monopolistic Expansion
  12. Liars and Inspectors: Optimal Financial Contracts When Monitoring is Non-Observable
  13. Inefficiency in a Bilateral Trading Problem with Cooperative Investment
  14. A Spatial Election with Common Values
  15. Is Sustainable Development Compatible with Rawlsian Justice?
  16. Multiple Lending and Constrained Efficiency in the Credit Market
  17. The Uniqueness of Stable Matchings
  18. Assessing the Likelihood of Panic-Based Bank Runs
  19. Are Manufacturers Competing through or with Supermarkets? A Theoretical Investigation
  20. Existence of Equilibrium for Segmented Markets Models with Interest Rate Monetary Policies
  21. Affiliated Common Value Auctions with Differential Information: The Two Bidder Case
  22. The Emergence of a Price System from Decentralized Bilateral Exchange
  23. Finite Memory Distributed Systems
  24. Topics Article
  25. Special Interest Politics and Endogenous Lobby Formation
  26. Robust Portfolio Selection with and without Relative Entropy
  27. Increased Risk-Bearing with Background Risk
  28. Resources as an Input of Production in a Two-Sector Economy
  29. Why the Reserve Price Should Not Be Kept Secret
  30. A Strategic Analysis of Terrorist Activity and Counter-Terrorism Policies
  31. The Role of Observability in Futures Markets
  32. An Amendment to Baumol's Burden Test
  33. Pareto Improving Lotteries and Voluntary Public Goods Provision
  34. Endogenous Favoritism in Organizations
  35. Age Bias in Fiscal Policy: Why Does the Political Process Favor the Elderly?
  36. Fundamental and Secondary R&D Races
  37. Rat Races and Glass Ceilings
  38. On the Number of Contestants and Equilibrium Individual Effort
  39. Vertical Differentiation: Multiproduct Strategy to Face Entry?
  40. Rational Sabotage in Cooperative Production with Heterogeneous Agents
  41. Competitive Externalities in Dynamic Monopolies with Stochastic Demand
  42. On the Signalling Role of Debt Maturity
  43. Equilibrium Uniqueness in a Cournot Model with Demand Uncertainty
  44. Monopoly Pricing over Time and the Timing of Investments
  45. Shirking and Squandering in Sharing Games
  46. Nonrevealing Equilibria and Consumption-Based Asset Pricing Models
Heruntergeladen am 18.11.2025 von https://www.degruyterbrill.com/document/doi/10.2202/1534-5971.1302/pdf
Button zum nach oben scrollen