ON THE STABILITY OF A COMPETITIVE BARTER PROCESS

Abstract

Edgeworth's barter process consists of successive barters between individuals according to their preferences and budgetary restraints. At each stage of the barter process, each individual transacts whenever he becomes better off by trading; and, in the competitive case, the quantity of a commodity in exchange for the unit quantity of a standard commodity rises or falls according to whether or not the aggregate demand for that commodity exceeds the aggregate supply. The Edgeworth's barter process is shown to be (over)ALWAYS GLOBALLY STABLE, PROVIDED THE PROCESS HAS A POSITIVE SOLUTION STARTING WITH AN ARBITRARY POSITIVE INITIAL DISTRIBUTION. (Author)

Document Details

Document Type
Technical Report
Publication Date
Nov 30, 1960
Accession Number
AD0248548

Entities

People

  • Hirofumi Uzawa

Organizations

  • Stanford University

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Commodities
  • Standards

Fields of Study

  • Economics

Readers

  • Economics
  • Finite Element Method (FEM) for solving Partial Differential Equations (PDEs)
  • Industrial Economics