Decentralized trade, random utility and the evolution of social welfare

• 成果类型: Article
• 署名作者: Michihiro, Kandori; Serrano, Roberto; Volij, Oscar
• 署名单位: University of Tokyo; Brown University; Iowa State University; Ben-Gurion University of the Negev
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2007.02.002
• 发表日期: 2008
• 页码: 328-338
• 关键词: Decentralized trade; exchange economies; Housing markets; long-run stochastic stability; logit model; social welfare functions

摘要

We study decentralized trade processes in general exchange economies and house allocation problems with and without money. The processes are affected by persistent random shocks stemming from agents' maximization of random utility. By imposing structure on the utility noise term-logit distribution-one is able to calculate exactly the stationary distribution of the perturbed Markov process for any level of noise. We show that the stationary distribution places the largest probability on the maximizers of weighted sums of the agents' (intrinsic) utilities, and this probability tends to I as noise vanishes. (c) 2007 Published by Elsevier Inc.