COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1360

From Nash to Walras via Shapley-Shubik

Pradeep Dubey and John Geanakoplos

April 2002

We derive the existence of a Walras equilibrium directly from Nash's theorem on noncooperative games. No price player is involved, nor are generalized games. Instead we use a variant of the Shapley-Shubik trading-post game.

Keywords: Nash equilibrium, Walras equilibrium, Shapley-Shubik trading-posts game, Money

JEL Classification: C72, D40, D41