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Discussion Papers In Economics And Business. 2018, 18-16, p. 1-8

Stability and Universal Implementability of the Price Mechanism

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

text

2018-05

http://www2.econ.osaka-u.ac.jp/library/global/dp/1816.pdf

An axiomatic characterization of price or market mechanisms is one of the most important problems in general equilibrium theory. Based on the general equilibrium framework and the characterization of the price mechanism, this paper provides a new perspective or a unified viewpoint on some axioms in social choice theory and a setting for the informational efficiency problem of the allocation mechanisms. Our arguments focus on a contemporary reconsideration and generalization of the category theoretic method in Sonnenschein (1974) and the replica stability arguments in social choice theory like Thomson (1988) and Nagahisa (1994). Sonnenschein's axiomatic characterization of the price mechanism is extended to an economy-dependent welfare form of a universal implementability theorem. The framework provides new methods and general settings in treating mechanisms with messages or information, and many social choice axioms. Our result also has an important economic interpretation that the price mechanism can be characterized as a universal rule that is stable in assuring sufficiently high utility levels for each member of a small economy relative to its large expansions.

69741

Stability and Universal Implementability of the Price Mechanism

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

2018-05

Discussion Papers In Economics And Business

18-16

1

8

https://hdl.handle.net/11094/69741

http://www2.econ.osaka-u.ac.jp/library/global/dp/1816.pdf