Bargaining Skills in an Edgeworthian Economy

• Type: Article in International Conference Proceedings Book
• Date: 2011

Authors

Ferreira, M (Author) Other; Finkenstadt, B (Author) Other; Oliveira, B (Author) FCNAUP; Pinto, AA (Author) FCUP; Yannacopoulos, AN (Author) Other

Conference proceedings International

Title: DYNAMICS, GAMES AND SCIENCE I

Pages: 339-352

International Conference on Dynamical Systems and Game Theory in Honor of Mauricio Peixoto and David Rand

Univ Minho, Braga, PORTUGAL, SEP 08-12, 2008

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Other information

Authenticus ID: P-00G-66D

DOI: 10.1007/978-3-642-11456-4_21

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 assign a bargaining skill factor to each participant which introduces a game, similar to the prisoner's dilemma, into the usual Edgeworth exchange economy. We analyze the effect of the bargaining skill factor on the amount of goods acquired and the overall increase in the utility of the consumer. Finally, we let the bargaining skills of the participants evolve with subsequent trades and study the impact of this change over time.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 14