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On the convergence to Walrasian prices in random matching Edgeworthian economies

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Abstract

We show that for a specific class of random matching Edgeworthian economies, the expectation of the limiting equilibrium price coincides with the equilibrium price of the related Walrasian economies. This result extends to the study of economies in the presence of uncertainty within the multi-period Arrow-Debreu model, allowing to understand the dynamics of how beliefs survive and propagate through the market.

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Authors and Affiliations

  1. LIAAD—INESC LA, Porto, Portugal

    A. A. Pinto, M. Ferreira & B. Oliveira

  2. Departamento de Matemática, Faculdade de Ciências, Universidade do Porto, Porto, Portugal

    A. A. Pinto

  3. ESEIG, Instituto Politécnico do Porto, Porto, Portugal

    M. Ferreira

  4. Faculdade de Ciências da Nutriçáo e Alimentaçáo, Universidade do Porto, Porto, Portugal

    B. Oliveira

  5. Department of Statistics, University of Warwick, Coventry, UK

    B. F. Finkenstädt

  6. Department of Statistics, Athens University of Economics and Business, Athens, Greece

    A. N. Yannacopoulos

Authors
  1. A. A. Pinto
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  2. M. Ferreira
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  3. B. F. Finkenstädt
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  4. B. Oliveira
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  5. A. N. Yannacopoulos
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Corresponding author

Correspondence to M. Ferreira.

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Pinto, A.A., Ferreira, M., Finkenstädt, B.F. et al. On the convergence to Walrasian prices in random matching Edgeworthian economies. Cent Eur J Oper Res 20, 485–495 (2012). https://doi.org/10.1007/s10100-011-0208-5

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  • DOI: https://doi.org/10.1007/s10100-011-0208-5

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