1. Cooperation of Small Groups - an Optimal Transport Approach [Arxiv]
In a segmented market in which agents work in small groups cooperatively, will there always be a stable state?
2. Market Segmenation [To be posted soon.]
When the agents can interact with only a limited number of each other, what is an equilibrium in an exchange market?
In general equilibrium models, the income effects are arbitarily small whenever agents care about sufficiently many commodities.
The title is clear.
In games, if agents care about each other in the second order, will there be a Nash equilibrium?