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| dc.contributor | Universitat Pompeu Fabra. Departament d'Economia i Empresa |
|---|---|
| dc.contributor.author | Bosch-Domènech, Antoni |
| dc.contributor.author | Sunder, Shyam |
| dc.date | 1996-06-01 |
| dc.identifier.citation | https://econ-papers.upf.edu/ca/paper.php?id=91 |
| dc.identifier.citation | Computational Economics, 16, 2000, pp. 257-284 |
| dc.identifier.uri | http://hdl.handle.net/10230/877 |
| dc.description.abstract | Economics is the science of want and scarcity. We show that want andscarcity, operating within a simple exchange institution (double auction),are sufficient for an economy consisting of multiple inter--related marketsto attain competitive equilibrium (CE). We generalize Gode and Sunder's(1993a, 1993b) single--market finding to multi--market economies, andexplore the role of the scarcity constraint in convergence of economies to CE.When the scarcity constraint is relaxed by allowing arbitrageurs in multiple markets to enter speculative trades, prices still converge to CE,but allocative efficiency of the economy drops. \\Optimization by individual agents, often used to derive competitive equilibria,are unnecessary for an actual economy to approximately attain such equilibria.From the failure of humans to optimize in complex tasks, one need not concludethat the equilibria derived from the competitive model are descriptivelyirrelevant. We show that even in complex economic systems, such equilibriacan be attained under a range of surprisingly weak assumptions about agentbehavior. |
| dc.format | application/pdf |
| dc.language.iso | eng |
| dc.relation | Economics and Business Working Papers Series; 91 |
| dc.rights | L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons |
| dc.rights | info:eu-repo/semantics/openAccess |
| dc.rights | http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
| dc.subject | competitive model |
| dc.subject | equilibrium |
| dc.subject | double auction |
| dc.subject | experimental economics |
| dc.subject | leex |
| dc.subject | Microeconomics |
| dc.title | Tracking the invisible hand: Convergence of double auctions to competitive equilibrium |
| dc.type | info:eu-repo/semantics/workingPaper |
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