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Quality of local equilibria in discrete exchange economies

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  • Lehmann, Daniel

Abstract

This paper defines the notion of a local equilibrium of quality (r,s), 0≤r,s, in a discrete exchange economy: a partial allocation and item prices that guarantee certain stability properties parametrized by the numbers r and s. The quality (r,s) measures the fit between the allocation and the prices: the larger r and s the closer the fit. For r,s≤1 this notion provides a graceful degradation for the conditional equilibria of Fu, Kleinberg and Lavi (2012) which are exactly the local equilibria of quality (1,1). For 1

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  • Lehmann, Daniel, 2020. "Quality of local equilibria in discrete exchange economies," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 141-152.
    • Handle: RePEc:eee:mateco:v:88:y:2020:i:c:p:141-152
    DOI: 10.1016/j.jmateco.2020.03.012
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    Cited by:

    1. Babaioff, Moshe & Dobzinski, Shahar & Oren, Sigal, 2022. "Combinatorial auctions with endowment effect," Games and Economic Behavior, Elsevier, vol. 136(C), pages 255-273.

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