Econometrica: Jan 1974, Volume 42, Issue 1

Recontracting Stability

https://doi.org/0012-9682(197401)42:1<35:RS>2.0.CO;2-R
p. 35-44

Allan M. Feldman

This paper contains a relatively simple proof for the stability of Edgeworthian recontracting. It also applies that proof to a random recontracting process in an economy with a finite number of utility vectors, in which the recontracting process is a Markov chain and all non-core utility vectors correspond to transient states.

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