When a rich variety of available goods is classified into a smaller number of tradable commodities, we have a market economy that relies on a simplified representation. We study how the classification of goods into commodities affects the allocation of scarce resources among agents. We also consider a notion of decentralized equilibrium that is achieved merely by an appropriate classification of the goods, regardless of the presence of a price-based mechanism.

Market equilibrium via classifications of commodities

LI CALZI, MARCO;URBINATI, Niccolò
2022-01-01

Abstract

When a rich variety of available goods is classified into a smaller number of tradable commodities, we have a market economy that relies on a simplified representation. We study how the classification of goods into commodities affects the allocation of scarce resources among agents. We also consider a notion of decentralized equilibrium that is achieved merely by an appropriate classification of the goods, regardless of the presence of a price-based mechanism.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3759928
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