Accession Number:

AD0774928

Title:

A Theory of Money and Financial Institutions. Part XV. A Trading Model to Avoid Tatonnement Metaphysics,

Descriptive Note:

Corporate Author:

YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Personal Author(s):

• Shubik,Martin

Report Date:

1974-02-13

Pagination or Media Count:

20.0

Abstract:

The article is devoted to examining some of the problems involved in specifying an explicit trading mechanism which enables one to consider price formation in a non-tatonnement context. In other words, this is where offers to buy or sell which are accepted are contracted regardless of what happens to the rest of the market. The traders live with and pay for their errors. A simple two-sided market is examined. It is sufficiently simple that it can be examined experimentally.

Descriptors:

• *Economic models
• *Commerce
• Bargaining
• Equilibrium(General)
• Game theory
• Strategy

Subject Categories:

• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE