TY - JOUR
T1 - Analysis of a dynamic, decentralized exchange economy
AU - Stacchetti, Ennio
N1 - Funding Information:
*This work was sponsored in part by the National Science Foundation under Grant MCS-8200 632. **I am very grateful to S.M. Robinson for his support and advice. Parts of the research reported in this paper are based on my doctoral thesis. I am also greatly indebted to H.F. Weinberger who suggested the argument used in section 4. He also proposed some major improvements in section 3.
PY - 1985
Y1 - 1985
N2 - A model of a dynamic exchange economy is presented. Similarly to the Walrasian equilibrium problem, each consumer is characterized by a feasible set and by an instantaneous demand function, that depends on the price vector, time, and the commodity holding. The commodity holding of each consumer varies, at each moment, according to this instantaneous demand function. We show that the market can choose prices that keep the commodity holding of each consumer within his consumption set, while ensuring that the aggregate commodity holding satisfies the scarcity constraints of the market.
AB - A model of a dynamic exchange economy is presented. Similarly to the Walrasian equilibrium problem, each consumer is characterized by a feasible set and by an instantaneous demand function, that depends on the price vector, time, and the commodity holding. The commodity holding of each consumer varies, at each moment, according to this instantaneous demand function. We show that the market can choose prices that keep the commodity holding of each consumer within his consumption set, while ensuring that the aggregate commodity holding satisfies the scarcity constraints of the market.
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U2 - 10.1016/0304-4068(85)90002-3
DO - 10.1016/0304-4068(85)90002-3
M3 - Article
AN - SCOPUS:2742529585
SN - 0304-4068
VL - 14
SP - 241
EP - 259
JO - Journal of Mathematical Economics
JF - Journal of Mathematical Economics
IS - 3
ER -