CFDP 1360

From Nash to Walras via Shapley-Shubik

Author(s): 

Publication Date: April 2002

Pages: 11

Abstract: 

We derive the existence of a Walras equilibrium directly from Nash’s theorem on noncooperative games. No price player is involved, nor are generalized games. Instead we use a variant of the Shapley-Shubik trading-post game.

Keywords: 

Nash equilibrium, Walras equilibrium, Shapley-Shubik trading-posts game, Money

JEL Classification Codes:  C72, D40, D41

See CFP: 1065