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|Title:||Convergence of Double Auctions to Pareto Optimal Allocations in the Edgeworth Box|
|Authors:||Gode, Dhananjay (Dan) K.|
|Keywords:||Pareto optimal allocations;Edgeworth Box;Double auction;Zero-intelligence traders|
|Series/Report no.:||Dhananjay (Dan) K. Gode-09|
|Abstract:||Double auctions with profit-motivated human traders as well as "zero-intelligence" programmed traders have previously been shown to converge to Pareto optimal allocations in partial equilibrium settings. We show that these results remain robust in two-good general equilibrium settings and elucidate how market structure, not optimization by traders, guides efficient resource allocation.|
|Appears in Collections:||Accounting Working Papers|
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