Abstract
This paper reports simulation results on the B-process of Hurwicz, Radner and Reiter (1975). In economies with indivisible goods, (where a competitive equilibrium need not exist) simulations indicate that the B-process converges quite rapidly to Pareto optimal outcomes. Furthermore, in an example of Gale (1963) with two divisible goods and convex preferences, the B-process yields equitable outcomes, in contrast to the Walrasian tatonnement, which converges to very ‘unfair’ allocations.
References
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Bala, V. Rates of convergence of B-processes: Some simulation results. Computer Science in Economics and Management 3, 281–286 (1990). https://doi.org/10.1007/BF00437070
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DOI: https://doi.org/10.1007/BF00437070