The exact law of large numbers for independent random matching

• 成果类型: Article; Proceedings Paper
• 署名作者: Duffie, Darrell; Sun, Yeneng
• 署名单位: Stanford University; National University of Singapore
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2012.01.003
• 发表日期: 2012
• 页码: 1105-1139
• 关键词: Independent random matching; search; Exact law of large numbers; Population dynamics; Random mutation

摘要

This paper provides a mathematical foundation for independent random matching of a large population, as widely used in the economics literature. We consider both static and dynamic systems with random mutation, partial matching arising from search, and type changes induced by matching. Under independence assumptions at each randomization step, we show that there is an almost-sure constant cross-sectional distribution of types in a large population, and moreover that the multi-period cross-sectional distribution of types is deterministic and evolves according to the transition matrices of the type process of a given agent. We also show the existence of a joint agent-probability space, and randomized mutation, partial matching and match-induced type-changing functions that satisfy appropriate independence conditions, where the agent space is an extension of the classical Lebesgue unit interval. (C) 2012 Published by Elsevier Inc.