@article{Hammond:269717, recid = {269717}, author = {Hammond, Peter}, title = {Designing a Strategy-Proof Spot Market Mechanism with Many Traders: Twenty-Two Steps to Walrasian Equilibrium}, address = {2016-01-01}, number = {2068-2018-1541}, series = {WERP 1108}, pages = {66}, year = {2016}, abstract = {To prove their Walrasian equilibrium existence theorem, Arrow and Debreu (1954) devised an abstract economy that Shapley and Shubik (1977) cricitized as a market game because, especially with untrustworthy traders, it fails to determine a credible outcome away from equilibrium. All this earlier work also postulated a Walrasian auctioneer with complete information about traders’ preferences and endowments. To ensure credible outcomes, even in disequilibrium, warehousing is introduced into a multi-stage market game. To achieve Walrasian outcomes in a large economy with incomplete information, even about traders’ endowments, a strategy-proof demand revelation mechanism is considered, and then extended to include warehousing.}, url = {http://ageconsearch.umn.edu/record/269717}, doi = {https://doi.org/10.22004/ag.econ.269717}, }