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### Cournot-Walras equilibrium as a subgame perfect equilibrium

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Busetto, Francesca, Codognato, Giulio and Ghosal, Sayantan .
(2008)
*Cournot-Walras equilibrium as a subgame perfect equilibrium.*
International Journal of Game Theory, Volume 37
(Number 3).
pp. 371-386.
ISSN 0020-7276

**Full text not available from this repository.**

Official URL: http://dx.doi.org/10.1007/s00182-008-0123-8

## Abstract

In this paper, we investigate the problem of the strategic foundation of the Cournot-Walras equilibrium approach. To this end, we respecify a la Cournot-Walras the mixed version of a model of simultaneous, noncooperative exchange, originally proposed by Lloyd S. Shapley. We show, through an example, that the set of the Cournot-Walras equilibrium allocations of this respecification does not coincide with the set of the Cournot-Nash equilibrium allocations of the mixed version of the original Shapley's model. As the nonequivalence, in a one-stage setting, can be explained by the intrinsic two-stage nature of the Cournot-Walras equilibrium concept, we are led to consider a further reformulation of the Shapley's model as a two-stage game, where the atoms move in the first stage and the atomless sector moves in the second stage. Our main result shows that the set of the Cournot-Walras equilibrium allocations coincides with a specific set of subgame perfect equilibrium allocations of this two-stage game, which we call the set of the Pseudo-Markov perfect equilibrium allocations.

[error in script] [error in script]Item Type: | Journal Article |
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Subjects: | H Social Sciences > HB Economic Theory Q Science > QA Mathematics |

Divisions: | Faculty of Social Sciences > Economics |

Library of Congress Subject Headings (LCSH): | Game theory, Noncooperative games (Mathematics), Equilibrium (Economics) |

Journal or Publication Title: | International Journal of Game Theory |

Publisher: | Springer |

ISSN: | 0020-7276 |

Date: | November 2008 |

Volume: | Volume 37 |

Number: | Number 3 |

Number of Pages: | 16 |

Page Range: | pp. 371-386 |

Identification Number: | 10.1007/s00182-008-0123-8 |

Status: | Peer Reviewed |

Publication Status: | Published |

Access rights to Published version: | Restricted or Subscription Access |

Version or Related Resource: | Busettoy, F., Codognatoz, G., and Ghosal, S. (2008). Cournot-Walras equilibrium as a subgame perfect equilibrium. [Coventry]: University of Warwick, Department of Economics. (Warwick economic research papers, no.837). http://wrap.warwick.ac.uk/id/eprint/219 |

Related URLs: | |

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URI: | http://wrap.warwick.ac.uk/id/eprint/29123 |

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