Strategic Foundations of General Equilibrium: Dynamic Matching and Bargaining Games (Churchill Lectures in Economics)

The theory of competition has held a central place in economic analysis since Adam Smith. This book, written by one of the most distinguished of contemporary economic theorists, reports on a major research program to provide strategic foundations for the theory of perfect competition. Beginning with a concise survey of how the theory of competition has evolved, Gale makes extensive and rigorous use of dynamic matching and bargaining models to provide a more complete description of how a competitive equlibrium is achieved. Whereas economists have made use of a macroscopic description of markets in which certain behavioral characteristics, such as price-taking behavior, are taken for granted, Gale uses game theory to re-evaluate this assumption, beginning with individual agents and modelling their strategic interaction. A strategic foundation for competitive equilibrium shows how such interaction leads to competitive, price-taking behavior. Essential reading for graduate courses in game theory and general equilibrium. This Book, Written By Contemporary Economic Theorists, Reports On A Major Research Program To Provide Strategic Foundations For The Theory Of Perfect Competition. Beginning With A Concise Survey Of How The Theory Of Competition Has Evolved, Gale Makes Extensive And Rigorous Use Of Dynamic Matching And Bargaining Models To Provide A More Complete Description Of How A Competitive Equilibrium Is Achieved. Whereas Economists Have Made Use Of A Macroscopic Description Of Markets In Which Certain Behavioral Characteristics, Such As Price-talking Behavior, Are Taken For Granted, Gale Uses Games Theory To Re-evaluate This Assumption, Beginning With Individual Agents And Modelling Their Strategic Interaction. A Strategic Foundation For Competitive Equilibrium Shows How Such Interaction Leads To Competitive, Price-talking Behavior. This Book Is Essential Reading For Graduate Courses In Game Theory And General Equilibrium.--jacket. Markets And Games -- Strategic Foundations Of Perfect Competition -- Why Strategic Foundations? -- Cooperative Market Games -- Non-cooperative Market Games -- Dynamic Matching And Bargaining Models -- Open Questions -- Perfect Competition -- Pure Exchange Economics -- Dynamic Matching And Bargaining Games -- Equilibrium -- The Edgeworth Property -- Efficiency -- Competitive Sequences Of Economies -- Existence -- Efficiency With Discounting -- Random Matching -- Mixed Equilibria -- A Summing Up -- Continuity And Anonymity -- Rubinstein And Wolinsky (1990) -- Bounded Rationality And Uniqueness -- The Limit Principle -- Repeated Games -- Limited Memory -- Large Anonymous Games -- Non-anonymous Games -- Bounded Rationality -- Imitation And Experimentation -- A Behavioral Model Of Competition -- Convergence To Competitive Prices -- Extensions. Douglas Gale. Includes Bibliographical References. The theory of competition has held a central place in economic analysis since Adam Smith. This book, written by one of the most distinguished of contemporary economic theorists, reports on a major research program to provide strategic foundations for the theory of perfect competition.Beginning with a concise survey of how the theory of competition has evolved, Gale makes extensive and rigorous use of dynamic matching and bargaining models to provide a more complete description of how a competitive equilibrium is achieved. Whereas economists have made use of a macroscopic description of markets in which certain behavioral characteristics, such as price-taking behavior, are taken for granted, Gale uses game theory to re-evaluate this assumption, beginning with individual agents and modelling their strategic interaction. A strategic foundation for competitive equilibrium shows how such interaction leads to competitive, price-taking behavior. This book is essential reading for graduate courses in game theory and general equilibrium. The theory of competition has held a central place in economic analysis since the time of Adam Smith. This book, written by one of the most distinguished of contemporary economic theorists, reports on a major research program to provide strategic foundations for the theory of competition. Making use of insights from game theory, search theory and bargaining theory, the author develops a model to explain what actually goes on in markets and how a competitive general equilibrium is achieved. Essential reading for graduate courses in game theory and general equilibrium. Reporting on a fifteen year research program, Professor Gale makes extensive and rigorous use of dynamic matching and bargaining models to provide foundations for theory of general competitive equilibrium. Essential reading for graduate courses in game theory and general equilibrium. lect0.pdf......Page 1 lect1.pdf......Page 34 lect2.pdf......Page 94 lect3.pdf......Page 135 lect4.pdf......Page 175 biblio.pdf......Page 179 In these lectures I report on a research program that began in the early 1980s.