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Full-Text Articles in Social and Behavioral Sciences
Existence Of Walras Equilibrium Without A Price Player Of Generalized Game, John Geanakoplos, Pradeep Dubey
Existence Of Walras Equilibrium Without A Price Player Of Generalized Game, John Geanakoplos, Pradeep Dubey
Cowles Foundation Discussion Papers
We derive the existence of a Walras equilibrium directly from Nash’s theorem on noncooperative games. No price player is involved, nor are generalized games.
Game Theory Without Partitions, And Applications To Speculation And Consensus, John Geanakoplos
Game Theory Without Partitions, And Applications To Speculation And Consensus, John Geanakoplos
Cowles Foundation Discussion Papers
Decision theory and game theory are extended to allow for information processing errors. This extended theory is then used to reexamine market speculation and consensus, both when all actions (opinions) are common knowledge and when they may not be. Five axioms of information processing are shown to be especially important to speculation and consensus. They are called nondelusion, knowing that you know, nested, balanced, and positively balanced. We show that it is necessary and sufficient that each agent’s information processing errors be nondeluded and (1) balanced so that the agents cannot agree to disagree, (2) positively balanced so that it …