Walras Retrouvé
Decentralized Trading Mechanisms and the Competitive Price
Bibliographic Data
| ID | 10171968 |
|---|---|
| Authors | Gianni De Fraja (0000-0001-6164-1002, Centre for Economic Policy Research), József Sákovics (0000-0002-2292-4699, Consejo Superior de Investigaciones Científicas) |
| Year | 2001 |
| Volume | 109 |
| Issue | 4 |
| Pages | 842-863 |
| Publication date | 2001-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/322087 |
| OpenAlex | W2025914834 |
| Language | FR |
| References cited | 20 |
We extend the standard analysis of decentralized markets to allow for the possibility that traders interact simultaneously with more than one trader on the opposite side of the market. In contrast with the literature, we reconcile the Walrasian equilibrium with the outcome of decentralized strategic trade: we show that there exist generic matching technologies that determine local market conditions such that, as market frictions vanish, the equilibrium price is the one that would result in the static Walrasian market. Our analysis highlights the importance of local market conditions for the determination of equilibrium prices
Competitive equilibrium · Contrast (vision · Economics · General equilibrium theory · Matching (statistics · Microeconomics · Outcome (game theory · Auction Theory and Applications · Computer Science · Economic theories and models · Game Theory and Applications
| Citation velocity | historical |
|---|---|
| Highly cited | No |