On the local convergence of economic mechanisms
type: Item
instance of: scholarly article
title: On the local convergence of economic mechanisms
zbMATH Open document ID: 0603.90026
DOI: 10.1016/0022-0531(86)90013-X
author: Donald G. Saari
author: Steven R. Williams
published in: Journal of Economic Theory
publication date: 1986-01-01T00:00:00Z
review text: For certain informationally decentralized economic models, it is known that the associated dynamical process need not be locally stable. In this paper, the causes of the conflict between the local stability of the process and the decentralizing of information are identified. This motivates a resolution for this problem. The method describes how approximate, local information about the economy can be used to modify a decentralized, dynamical procedure to achieve local stability. Explicit procedures are given for constructing the decentralized systems with which the agents communicate this approximate information. As an illustration, this approach provides a partial response to the well-known convergence problems with the tâtonnement model.
Mathematics Subject Classification ID: 91B50
zbMATH DE Number: 3974661
zbMATH Keywords: informationally decentralized economic models
zbMATH Keywords: local stability
zbMATH Keywords: approximate information
MaRDI profile type: Publication
cites work: Excess demand functions
cites work: Q3256523
cites work: Differential Topology
cites work: Q5668220
cites work: Approximation in a continuous model of computing
cites work: A method for constructing message systems for smooth performance functions
cites work: Iterative Price Mechanisms
cites work: Effective Price Mechanisms
cites work: Some Examples of Global Instability of the Competitive Equilibrium
cites work: Market Excess Demand Functions
cites work: Q3883494
cites work: Necessary and sufficient conditions for the existence of a locally stable message process
cites work: Implementing a generic smooth function
full work available at URL: 0022-0531(86)90013-x
OpenAlex ID: W2046014117
description: scientific article; zbMATH DE number 3974661