Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80227
Authors: 
Kandori, Michihiro
Serrano, Robert
Volij, Oscar
Year of Publication: 
2004
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2004-06
Abstract: 
We study decentralized trade processes in general exchange economies and house allocation problems with and without money. Such processes are subject to persistent random shocks stemming from agents’ maximization of random utility. By imposing structure on the utility noise term —logit distribution—, one is able to calculate exactly the stationary distribution of the perturbed Markov process for any level of noise. We show that the stationary distribution places the largest probability on the maximizer of several social welfare functions in different variants of the model.
Subjects: 
decentralized trade
exchange economies
housing markets
stochastic stability
logit model
social welfare functions
JEL: 
C79
D51
D71
Document Type: 
Working Paper

Files in This Item:
File
Size
288.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.