Accession Number : AD0687421

Title :   THE USE OF PRICES TO CHARACTERIZE THE CORE OF AN ECONOMY.

Descriptive Note : Research memo.,

Corporate Author : PRINCETON UNIV N J ECONOMETRIC RESEARCH PROGRAM

Personal Author(s) : Cornwall,Richard R.

Report Date : NOV 1968

Pagination or Media Count : 39

Abstract : The core of an economy is the set of outcomes of trading and production which have the property that no coalition of traders and producers can do better for its members. When the traders and producers are 'perfectly competitive,' any such outcome can be achieved by using an appropriate price system. This paper establishes this well-known result under very general conditions by building on a model due to Vind. Particular attention is paid to the problem of representing 'perfect competition' and of describing production in a nonmarket economy. All assumptions in this model are formulated so as to be easily compared with the assumptions made by Aumann in his model of a perfectly competitive economy. (Author)

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), COMMERCE, GAME THEORY, STABILITY, SET THEORY, OPTIMIZATION, EFFICIENCY, DECISION MAKING

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE