ENGLISH

Hierarchically Structured Economies: Models with Bilateral Exchange Institutions

By Willy Spanjers (auth.)

Book information

Publisher
Springer US
Year
1997
ISBN
978-1-4419-4771-0, 978-1-4757-5394-3
DOI
10.1007/978-1-4757-5394-3
Language
english
Format
PDF
Filesize
15 MB (15477634 bytes)
Series
Theory and Decision Library 15
Edition
1
Pages
182\182
Time added
2014-01-18 08:00:00
Microeconomics; Economic Theory

Description

In six chapters this book introduces a micro-economic model where trade takes place through a stable structure of bilateral exchange institutions.The main problem in such models is that, for well-known equilibrium concepts, equilibrium may fail to exist in the corresponding game. In this work an adaptation of such models - hierarchically structured economies - is introduced. The possibilities and limitations of the use of the concept of subgame perfect equilibrium within the context of this kind of models is discussed. Furthermore, it is shown that some well-known market forms, viz. Walrasian and monopolistic markets, occur as special cases. A modification of the concept of subgame perfect equilibrium is introduced to formulate and prove a general theorem on the existence of equilibrium in hierarchically structured economies.

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