Noncooperative Exchange With a Continuum of Traders
Expert InsightsPublished 1977
Price formation and trade in a large exchange economy is modeled as a non-atomic noncooperative game in two contrasting ways: (1) with fiat money, with borrowing and bankruptcy permitted, and (2) with a commodity money and no borrowing. Results relating the noncooperative (Nash) equilibrium with the competitive (Walrus) equilibrium are obtained for each model, and some special cases are considered. The basic problem of measurability of the strategy selection when there is a continuum of players is also considered, and way of resolving it is proposed.
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Document Details
- Copyright: RAND Corporation
- Availability: Web Only
- Year: 1977
- Pages: 42
- DOI: https://doi.org/10.7249/P5964
- Document Number: P-5964
Citation
RAND Style Manual
Dubey, Pradeep and Lloyd S. Shapley, Noncooperative Exchange With a Continuum of Traders, RAND Corporation, P-5964, 1977. As of July 10, 2026: https://www.rand.org/pubs/papers/P5964.html
Chicago Manual of Style
Dubey, Pradeep and Lloyd S. Shapley, Noncooperative Exchange With a Continuum of Traders. Santa Monica, CA: RAND Corporation, 1977. https://www.rand.org/pubs/papers/P5964.html.
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