Please use this identifier to cite or link to this item: https://repositorio-aberto.up.pt/handle/10216/92372
Author(s): B. Finkenstädt
A. A. Pinto
M. Ferreira
B. M. P. M. Oliveira
Title: Edgeworthian economies
Issue Date: 2007
Abstract: We present a model of an Edgeworthian exchange economy where two goods are traded in a random meeting market place.The novelty of our model is that we associate a greediness factor to each participant which brings up a game alike theprisoner's dilemma into the usual Edgeworthian exchange economy. Along the time, random pairs of participants are chosen,and they trade or not according to their greediness. Furthermore, we let the greediness of the participants evolve along thetrades according to one of the following rules: (a) the greediness of the participants decreases if they were able to trade andincreases otherwise; (b) the greediness of the participants increases if they were able to trade and decreases otherwise. Weobserve that for rule (a) the greediness of each participant converges to one of two possible values, and that for rule (b) thegreediness of all participants converges to a single value.
Description: We present a model of an Edgeworthian exchange economy where two goods are traded in a random meeting market place.The novelty of our model is that we associate a greediness factor to each participant which brings up a game alike theprisoner's dilemma into the usual Edgeworthian exchange economy. Along the time, random pairs of participants are chosen,and they trade or not according to their greediness. Furthermore, we let the greediness of the participants evolve along thetrades according to one of the following rules: (a) the greediness of the participants decreases if they were able to trade andincreases otherwise; (b) the greediness of the participants increases if they were able to trade and decreases otherwise. Weobserve that for rule (a) the greediness of each participant converges to one of two possible values, and that for rule (b) thegreediness of all participants converges to a single value.
Subject: Matemática
Mathematics
Scientific areas: Ciências exactas e naturais::Matemática
Natural sciences::Mathematics
URI: http://hdl.handle.net/10216/92372
Source: Proceedings in Applied Mathemetics and Mechanics (PAMM)
Document Type: Artigo em Livro de Atas de Conferência Internacional
Rights: restrictedAccess
Appears in Collections:FCUP - Artigo em Livro de Atas de Conferência Internacional

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