Midlands State University Library

Discrete Walrasian exchange process/

Bonnisseau, Jean-Marc

Discrete Walrasian exchange process/ created by Jean-Marc Bonnisseau and Orntangar Nguenamadji - Economic theory Volume 52, number 3 .

In an exchange economy, we define a discrete exchange process, which is Walrasian, since the trades are determined by the equilibrium allocation of the local equilibrium. We prove that this process attains a Pareto optimal allocation after a finite number of steps and the local equilibrium price then supports the Pareto optimal allocation. Furthermore, along the process, the allocation remains feasible and the utility of each consumer is non-decreasing.

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Exchange process--Local equilibrium--Walrasian equilibrium

Local equilibrium

HB119 ECO