We examine the structure of the core of a trading economy with three competitive equilibria as the number of traders (N) is varied. The core first splits into two pieces at N = 5 and then splits a second time into three pieces at N = 12. Both of these splits occur not at a point but as a contiguous gap. We find that the speed of convergence of the core toward the three competitive equilibria is not uniform but when N is large, the convergence rate is approximately of the order 1/N.
- Multiple competitive equilibria
- Sensitivity analysis
- Speed of convergence
ASJC Scopus subject areas
- Economics and Econometrics