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We propose a simple bargaining procedure, the equilibrium of which converges to the Walrasian allocation as the agents become increasingly patient. We thus establish that the competitive outcome obtains even if agents have market power and are not price-takers. Moreover, where in other...
Persistent link: https://www.econbiz.de/10014071470
We introduce the notion of expectational equilibrium in a very general specification of the many-to-one matching with contracts model. The endogenous variables in an expectational equilibrium are expectations about tradable contracts. Expectational equilibrium outcomes are equivalent to stable...
Persistent link: https://www.econbiz.de/10014095483
' endowments), then the mechanism necessarily implements a sub-correspondence of the core correspondence. If the mechanism also …
Persistent link: https://www.econbiz.de/10014104480
This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic analysis in the last forty years or so. The central object of the theory is altruistic gift-giving, construed as benevolent voluntary redistribution of income or wealth. The theory...
Persistent link: https://www.econbiz.de/10014023678
This paper defines a measure of bargaining uncertainty that quantifies Roth's concept of strategic risk. It shows how this measure can be used for checking reliability of the Shapley value in cost allocation problems and in the theory of competitive equilibrium. Salient properties of the new...
Persistent link: https://www.econbiz.de/10014087498
The paper considers a one-to-one matching with contracts model in the presence of price controls. This set-up contains two important streams in the matching literature, those with and those without monetary transfers, as special cases and allows for intermediate cases with some restrictions on...
Persistent link: https://www.econbiz.de/10013029128
refinement of Myerson's core for which information disseminates across coalitions within a given random blocking mechanism. Under …We study core convergence in interim quasilinear economies with asymmetric information, concentrating on core notions … in which information is transmitted endogenously within coalitions and the incentive constraints are relevant …
Persistent link: https://www.econbiz.de/10005764674
incentive compatibility constraints: the associated ex ante core is generically non-empty. How ever, we exhibit a well …-behaved exchange economy in which this core is empty, even if goods are allocated through random mechanisms. …
Persistent link: https://www.econbiz.de/10005779439
We study information transmission in large interim quasilinear economies using the theory of the core. We concentrate … on the core with respect to equilibrium blocking, a core notion in which information is transmitted endogenously within … coalitions, as blocking can be understood as an equilibrium of a communication mechanism used by players in coalitions. We …
Persistent link: https://www.econbiz.de/10008518033
parameters specifying the interpersonal comparisons in the side-payment game. We study this game for the properties of the delta-core …
Persistent link: https://www.econbiz.de/10008479208