Allais' Trading Process and the Dynamic Evolution of a Market Economy
Posted: 24 Jan 2001
We construct a simple trading process that is based on the maximization, at each stage, of the total distributable surplus. We show that this process converges to a Pareto optimal allocation.
Keywords and Phrases: Trading process, Distributable surplus, Benefit function.
JEL Classification: D00, D50
Suggested Citation: Suggested Citation