Reply to professor Vanek's comment on Bogetic's paper in the same issue of the Economic Analysis and Workers' Management.

The paper demonstrates a potential theoretical problem in achieving general equilibrium in an economy composed of firms maximizing income per worker; a problem which suggests that disequilibria in a labor- managed economy might be a rule rather than exception.

This is an Invited paper for the World Congress of the Econometric Society held in Seattle in August 2000. We discuss the strong connections between auction theory and "standard" economic theory, and argue that auction-theoretic tools and intuitions can provide useful arguments and insights in a...