DOI link to open access article:
On a spontaneous decentralized market process
Satoru Fujishige, Zaifu Yang
Journal of Mechanism and Institution Design
Volume 2, issue 1, pages 1-37 (December 2017)
We examine a spontaneous decentralized market process widely observed in real life labor markets. This is a natural random decentralized dynamic competitive process. We show that this process converges globally and almost surely to a competitive equilibrium. This result is surprisingly general by assuming only the existence of an equilibrium. Our findings have also meaningful policy implications.
Keywords: Spontaneous market process, decentralized market, competitive equilibrium.
JEL Classification Numbers: C71, C78, D02, D44, D58.