Edgeworth Market Games: Price-Taking and Efficiency
Published Online: 15 FEB 2011
Copyright © 2010 John Wiley & Sons, Inc. All rights reserved.
Wiley Encyclopedia of Operations Research and Management Science
How to Cite
Chowdhury, P. R. 2011. Edgeworth Market Games: Price-Taking and Efficiency. Wiley Encyclopedia of Operations Research and Management Science. .
- Published Online: 15 FEB 2011
This article surveys the Edgeworth market game literature, which formalizes multiagent trading as a game. The key issues are two fold, whether, as the economy becomes large, (i) price-taking emerges, and (ii) whether efficiency is obtained. The focus here is on production economies under partial equilibrium, where the two questions converge to a single one, that is if the equilibrium approximates the competitive one in the limit. We however also discuss related approaches to market games, in particular (i) the cooperative approach, (ii) the trading post literature, and (iii) Cournot competition under general equilibrium.
- market game;
- Walrasian equilibrium;
- trading post;
- price competition;
- quantity competition;
- price-taking behavior;
- partial equilibrium;
- general equilibrium;
- competitive price;
- folk theorem