Balanced equilibrium in pseudo-markets with endowments

B-Tier
Journal: Games and Economic Behavior
Year: 2023
Volume: 141
Issue: C
Pages: 428-443

Authors (3)

Echenique, Federico (University of California-Berke...) Miralles, Antonio (not in RePEc) Zhang, Jun (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a variant of Hylland and Zeckhauser (1979)'s model that allows agents to start out with different endowments, we develop a pseudo-market procedure that allows the policymaker to decide to what extent individual endowment differences shall be balanced by the average endowment. Our procedure sidesteps the known non-existence problem of Walrasian equilibria, and finds an efficient and balanced individually-rational allocation. Envy in our procedure is justified in a utilitarian sense: an envying agent's endowment must make a lower contribution to standard weighted utilitarian welfare than that of the envied agent.

Technical Details

RePEc Handle
repec:eee:gamebe:v:141:y:2023:i:c:p:428-443
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25