The Library
Decentralised exchange, out-of-equilibrium dynamics and convergence to efficiency
Tools
Ghosal, Sayantan and Porter, James (2013) Decentralised exchange, out-of-equilibrium dynamics and convergence to efficiency. Mathematical Social Sciences, Volume 66 (Number 1). pp. 1-21. doi:10.1016/j.mathsocsci.2012.12.005 ISSN 0165-4896.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.mathsocsci.2012.12.005
Abstract
In this paper, we study out-of-equilibrium dynamics with decentralised exchange (bilateral bargaining between randomly matched pairs of agents). We characterise the conditions under which out-of-equilibrium trading converges to efficient allocations when agents are myopic, have limited information and incur utility losses relative to current holdings by engaging in (bounded) experimentation. We show, numerically, that the rate of convergence to efficient allocations is exponential across a variety of different settings where agents’ preferences can be represented by a Cobb–Douglas utility function. Finally the results are generalised to explicit exchange networks.
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | Mathematical Social Sciences | ||||
Publisher: | Elsevier BV | ||||
ISSN: | 0165-4896 | ||||
Official Date: | 2013 | ||||
Dates: |
|
||||
Volume: | Volume 66 | ||||
Number: | Number 1 | ||||
Page Range: | pp. 1-21 | ||||
DOI: | 10.1016/j.mathsocsci.2012.12.005 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |