Rocheteau, Guillaume (contributor); … - 2005
the egalitarian solution (Luce and
Raiffa, 1957; Kalai, 1977), the Friedman Rule achieves the first best allocation. We … result in Lagos and Wright (2005) — hereafter denoted LW — is that the
Friedman rule cannot replicate the first best … bargaining. However, at the Friedman rule there is no sunk cost of acquiring money
— agents can sell a unit of money in the next …