Bargaining Skills in an Edgeworthian Economy

• Type: Chapter or Part of a Book
• Date: 2011

Authors

Ferreira, M. (Author) Other; Finkenstädt, B.F. (Author) Other; Oliveira, Bruno (Author) FCNAUP; Pinto, A.A. (Author) FCUP; Yannacopoulos, A.N. (Author) Other

Book

Title: Dynamics, Games and Science I, DYNA 2008, in Honor of Maurício Peixoto and David Rand. Springer Proceedings in Mathematics

1º Edition

Pages: 339-352

ISBN: 978-3-642-11455-7

Publisher: Springer

Scientific classification

FOS: Medical and Health sciences > Health sciences

CORDIS: Health sciences

Other information

Abstract (EN): We present a model of an Edgeworthian exchange economy where two goods are traded in a market place. For a specific class of random matching Edgeworthian economies, the expectation of the limiting equilibrium price coincides with that of related Walrasian economies. The novelty of our model is that we associate a bargaining skill factor to each participant which brings up a game alike the prisoner’s dilemma into the usual Edgeworth exchange economy. We analyze the effect of the bargaining skill factors in the variations of the individual amount of goods and in the increase of the value of their utilities. Finally, we let the bargaining skills of the participants evolve along the trades and we study their variation.

Language: English

Type (Professor's evaluation): Scientific