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de Dios, Emmanuel S.
Ong, Grace T.
Year of Publication: 
Series/Report no.: 
UPSE Discussion Paper 2010,02
A non-tatonnement process is described using the simplest demandand-supply model, involving the following: uniformly distributed agents; random matching of buyers and sellers; and a universal permission to engage in mutually acceptable trade at nonequilibrium prices. A sufficient condition is then stated where expected welfare gains are paradoxically greater when the number of market agents is restricted, compared to when all traders are allowed to participate.
Document Type: 
Working Paper
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