Big Data

Market Games And Clubs

Date Added: Oct 2009
Format: PDF

The equivalence of markets and games concerns the relationship between two sorts of structures that appear fundamentally different - markets and games. Shapley and Shubik (1969) demonstrates that: games derived from markets with concave utility functions generate totally balanced games where the players in the game are the participants in the economy and every totally balanced game generates a market with concave utility functions. A particular form of such a market is one where the commodities are the participants themselves, a labor market for example.