COWLES FOUNDATION FOR RESEARCH IN
ECONOMICS Box 208281
COWLES FOUNDATION DISCUSSION PAPER NO. 1729 Marshallian Money, Welfare, and Side-Payments Cheng-Zhong Qin, Lloyd S. Shapley, and Martin Shubik September 2009 A link between a no-side-payment (NSP) market game and a side-payment (SP) market game
can be established by introducing a sufficient amount of an ideal utility-money of
constant marginal utility to all agents. At some point when there is "enough
money" in the system, if it is "well distributed" the new game will be a SP
game. This game can also be related to a pure NSP game where a set of default parameters
have been introduced. These parameters play a role similar to the parameters specifying
the interpersonal comparisons in the side-payment game. We study this game for the
properties of the delta-core and consider both the conditions for the uniqueness of
competitive equilibria and a new approach to the second welfare theorem. A discussion of
the relationship between market games and strategic market games is also noted. |
