Nonconvergence of the Mas-Colell and Zhou Bargaining Sets.
In an nontransferable utility (NTU) exchange economy with a continuum of agents, the Mas- Colell bargaining set coincides with the set of Walrasian equilibria. In this paper, we show that the Mas-Colell bargaining set, as well as a smaller bargaining set due to Zhou, may fail to converge to competitive outcomes in large finite NTU exchange economies.