We show that if limit orders are required to vary smoothly, then strategic (Nash) equilibria of the double auction mechanism yield competitive (Walras) allocations. It is not necessary to have competitors on any side of any market: smooth trading is a substitute for price wars. In particular,...

In this paper, we study the number of pure strategy Nash equilibria in a "random" n-person non-cooperative game in which all players have a countable number of strategies. We provide explicit expressions for the expected number of pure strategy Nash Equilibria, and show that the distribution of...