On the local convergence of economic mechanisms

DOI10.1016/0022-0531(86)90013-XMaRDI QIDQ1083009zbMATH OpenOpenAlexFDO

Authors Donald G. Saari, Steven R. Williams

Publication date 1986

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0022-0531(86)90013-x

zbMATH Keywords

approximate informationinformationally decentralized economic modelslocal stability

Mathematics Subject Classification ID

General equilibrium theory (91B50)

Review text

For certain informationally decentralized economic models, it is known that the associated dynamical process need not be locally stable. In this paper, the causes of the conflict between the local stability of the process and the decentralizing of information are identified. This motivates a resolution for this problem. The method describes how approximate, local information about the economy can be used to modify a decentralized, dynamical procedure to achieve local stability. Explicit procedures are given for constructing the decentralized systems with which the agents communicate this approximate information. As an illustration, this approach provides a partial response to the well-known convergence problems with the tâtonnement model.

Recommendations

• Approximate tâtonnement processes
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Cites work

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Cited in

(12)

• Some informational requirements for convergence
• Decentralized dynamic processes for finding equilibrium
• A continuity property for local price adjustment mechanisms
• The aggregated excess demand function and other aggregation procedures
• On efficiency and local uniqueness in two-sector OLG economies
• When are local incentive constraints sufficient?
• A Simple Stochastic Adjustment Process
• scientific article; zbMATH DE number 3932800 (Why is no real title available?)
• On the existence of universally convergent mechanisms
• Necessary and sufficient conditions for the existence of a locally stable message process
• Automaton and group structures in certain economic adjustment mechanisms
• From decision problems to dethroned dictators

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