Noncooperative games, coupling constraints, and partial efficiency
- 100 Downloads
Many noncooperative settings require sharing of aggregate holdings—be these of natural resources, production tasks, or pollution permits. This paper considers instances where the shared items eventually become competitively priced. For that reason, the solution concept incorporates features of Nash and Walras equilibria. Focus is on how the concerned agents, by themselves, may reach an outcome of such sort. A main mechanism is direct bilateral exchange, repeated time and again.
KeywordsCoupling constraints Normalized Nash equilibrium Partial efficiency Bilateral exchange Monotonicity Stability Convergence
JEL ClassificationC62 C72 D43 D62
Thanks are due: for support CESifo, München and the Arne Ryde Foundation, Lund–and for hospitality the University of Alicante.
- Flåm, S.D., Gramstad, K.: Reaching equilibrium in emission and resource markets, submitted (2015)Google Scholar
- Flåm, S.D.: Bilateral exchange and competitive equilibrium, to appear in Set- Valued and Variational Analysis (2015)Google Scholar
- Forgó, F., Szép, J., Szidarovski, F.: Introduction to the Theory of Games. Springer, Berlin (1999)Google Scholar
- Gintis, H.: The Bounds of Reason: Game Theory and the Unification of the Behavioral Sciences. Princeton University Press, Princeton, New Jersey (2009)Google Scholar
- Mas-Colell, A., Whinston, M.D., Green, J.: Microeconomic Theory. Oxford University Press, Oxford (1995)Google Scholar
- Necoara, I., Nesterov, Y., Glineur, F.: A random coordinate descent method on large-scale optimization problems with linear constraints. http://acse.pub.ro/person/ion-necoara (2015)
- Osborne, M.J., Rubinstein, A.: Bargaining and Markets. Academic Press, New York (1990)Google Scholar
- Outrata, J.V., Ferris, M.C., Červinka, M., Outrata, M.: On Cournot–Nash–Walras equilibria and their computation. http://www.optimization-online.org/DB-HTML/2015/09/5128.html (2015)
- Smith, V.L.: Rationality in Economics. Cambridge Univ Press, Cambridge (2008)Google Scholar