We characterize the Pareto correspondence, the core and the Walras solution using the axioms of consistency, converse consistency and one-person rationality. Consistency and its converse are defined with respect to suitably constructed reduced economies for each case. Our results hold for the...

We study a decentralized matching model in a large exchange economy, in which trade takes place through non--cooperative bargaining in coalitions of finite size. Under essentially the same conditions of core equivalence, we show that the strategic equilibrium outcomes of our model coincide with...

The one-state machine that always defects is the only evolutionarily stable strategy in the machine game that is derived from the prisoners' dilemma, when preferences are lexicographic in complexity. This machine is the only stochastically stable strategy of the machine game when players are...

ABSTRACT: Stochastic stability is applied to the problem of exchange. We analyze the stochastic stability of two dynamic trading processes in a simple housing market. In both models, traders meet in pairs at random and exchange their houses when trade is mutually beneficial, but occasionally...

We analyze the problem of extending a given bilateral principle of justice to a consistent n-creditor bankruptcy rule. Based on the bilateral principal, we build a family of binary relations on the set of creditors in order to make bilateral comparisons between them. We find that the possibility...

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This paper develops a general equilibrium model of the gender wage gap. The difference in earnings is a consequence of a demographic regularity--that men tend to marry younger women--which may limit women's labor mobility and, hence, their average earnings. However, couples are always free not...

The uniform rule is considered to be the most important rule for the problem of allocating an amount of a perfectly divisible good between agents who have single-peaked preferences. The uniform rule was studied extensively in the literature and several characterizations were provided. The aim of...

Consider an exchange economy where agents are arbitragers, in that they try to upset allocations imagining plausible beneficial trades. With an introspective algorithm, each agent constructs an interactive choice set (ICS), i.e., a set of bundles that he considers achievable through a sequence...