TY - JOUR

T1 - Matching models with a conservation law

T2 - The existence and global structure of the set of stationary equilibria

AU - Kamiya, K.

AU - Talman, A.J.J.

N1 - Appeared earlier as CentER DP 2003-70 (revised title)

PY - 2009

Y1 - 2009

N2 - We study random matching models where there is a set of infinitely lived agents, and in each period agents are pairwise matched to each other and play a stage game. We investigate the basic structure of equilibria in such models: the existence of equilibria and the global structure of the set of equilibria. Specifically, we focus on models with a conservation law, which typically holds in economies having some assets, such as money. In such models, under certain regularity conditions the set of equilibria is one-dimensional and each connected component of it is a piecewise smooth one-dimensional manifold being homeomorphic to either the unit circle or the unit interval. Moreover, in an endpoint of an interval all agents have the same amount of assets.

AB - We study random matching models where there is a set of infinitely lived agents, and in each period agents are pairwise matched to each other and play a stage game. We investigate the basic structure of equilibria in such models: the existence of equilibria and the global structure of the set of equilibria. Specifically, we focus on models with a conservation law, which typically holds in economies having some assets, such as money. In such models, under certain regularity conditions the set of equilibria is one-dimensional and each connected component of it is a piecewise smooth one-dimensional manifold being homeomorphic to either the unit circle or the unit interval. Moreover, in an endpoint of an interval all agents have the same amount of assets.

M3 - Article

VL - 45

SP - 397

EP - 413

JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

SN - 0304-4068

IS - 5-6

ER -