Abstract

Consider agents who just use markets and money to mediate trade and express economic interests. Suppose bid-ask spreads – derived from generalized differentials – drive and incite transactions. On that basis, this paper indicates good prospects for convergence towards competitive equilibrium. Presuming private property, main arguments hinge on three hooks: First, Fenchel conjugation to record profits or values added; second, aggregate convexity to support Pareto efficiency by prices; and third, absence of externalities to make total additions of value dwindle step by step.

Author information

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Sjur Didrik Flåm

University of Bergen, Norway

Keywords

  • Conjugation
  • convexity
  • competitive equilibrium

Mathematics Subject Classification

90C25, 91B24, 91B50

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Suggested citation

S. D. Flåm. “By Bid-Ask Spreads towards Competitive Equilibrium.” Journal of Convex Analysis 30 (2023), No. 3, 937–950. https://doi.org/10.68381/jca30044

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Published by Heldermann Verlag, 2023. Rights now held by Banach Press LLC.