This paper investigates the dynamic behavior of an economy with multiple Nash equilibria. The first part of the paper analyzes an abstract game exhibiting multiple equilibria. A history dependent selection criterion is proposed which induces correlated behavior in equilibrium even though agents...

In this paper we introduce a model of an exchange economy with indivisible goods and money. There are many agents each of whom owns one unit of each of nitely many different types of indivisible goods and certain amount of money. Each type of indivisible good is subject to quality...