Copyright

Martin Osborne; Ariel Rubinstein

Published On

2023-06-26

Page Range

pp. 121–136

Language

  • English

Print Length

15 pages

A market

Chapter of: Models in Microeconomic Theory: Expanded Second Edition (She) (pp. 121–136)

This chapter, unlike in the previous one, assumes that the ownership of a house is recognized and protected. Each house is initially owned by some individual. Houses can be exchanged only with the mutual consent of both owners; no individual can force another individual to give up her house.

The model allows us to introduce the central economic idea of prices as a means of guiding the individuals to a reallocation of the houses in which no group of individuals want to voluntarily exchange their houses.

Contributors

Martin J. Osborne

(author)
Professor Emeritus of Economics at University of Toronto
https://orcid.org/0000-0001-8584-6176

Ariel Rubinstein

(author)
Emeritus in School of Economics at Tel Aviv University
Professor of Economics at New York University
https://orcid.org/0000-0003-1574-2659
https://arielrubinstein.org/