The AND-OR Game: Equilibrium Characterization
Introduction and Results Overview
Walrasian equilibrium is one of the basic notions in economic theory. Items are priced in such a way that the market clears i.e. the supply for each item equals the demand for it (or there may be items with excess supply priced at zero.) When there is a Walrasian equilibrium, it captures nicely the “right” pricing of items. Unfortunately, Walrasian equilibria are guarantee to exists only for limited classes of agents’ valuations, namely gross-substitute valuations.