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A strategic market game with complete markets
Journal article   Peer reviewed

A strategic market game with complete markets

Rabah Amir, Siddharta Sahi, Martin Shubik and Shuntian Yao
Journal of economic theory, Vol.51(1), pp.126-143
06/01/1990
DOI: 10.1016/0022-0531(90)90054-N

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Abstract

An exchange economy is modeled as a strategic market game with all pairwise markets available. Existence of noncooperative equilibria is proved. It is shown that if resources are distributed in a skewed manner, in equilibrium prices may not satisfy the no arbitrage condition. One round of trade even with all goods serving as money is not sufficient to provide enough liquidity for efficient trade

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