Market Indeterminacy Sparks Payoff Uncertainty in Exchange Economies - Study
The article analyzes how traders interact in a market with many participants and unlimited exchanges. They find that when there are multiple possible prices, traders' payoffs can vary if they change their strategies. To solve this, they define a specific type of equilibrium where all traders' actions lead to a stable outcome. They also show that this equilibrium is similar to another well-known economic concept. Ultimately, they prove that this equilibrium always exists in these types of markets.