About this document
Dynamics of Decentralized Market Equilibrium by El Mehdi Taybi is a document available to read on EtoBox.
This document describes a model of a decentralized market economy as a Markov process. In the model, each agent has private prices that are updated through trading experience and by copying more successful agents. With random initial private prices, the economy quickly moves to a quasi-Walrasian equilibrium where private prices converge. In this equilibrium, the distribution of prices and quantities approximates a standard Walrasian equilibrium. When agents can trade non-produced goods, a money good emerges
- Author
- El Mehdi Taybi
- Language
- EN