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.Log In To View Full Content