Stability of Walrasian and Marshallian adjustment mechanisms in multiple markets

Comparing the convergence of a Walrasian price adjustment process and that of a Marshallian quantity adjustment process in a multiple market setting, we show that both mechanisms are locally stable for any adjustment speeds if the demand system is characterised by a negative dominant diagonal.local stability; Walrasian process; Marshallian process; dominant diagonal matrices; multiple markets; price adjustment; quantity adjustment.

Cooperative moves in a non-cooperative game

We try to show that the use of alternating decision making in an infinitely repeated prisoners' dilemma type game may enable sophisticated players to achieve perpetual cooperation starting from any initial position and without any prior communication, and that the ability of players to do so depends on the relative magnitudes of the pay-offs in the stage game.game theory; cooperative games; non-cooperative games; cooperation; alternating decision making; pay-offs.