A New Perspective on Decentralized Trade
Nicolaas J. Vriend, Santa Fe Institute
Economie Appliquée, 1994, Vol. 47, No. 4, p. 5-22

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Abstract. This essay discusses the appropriate methodological point of view on how to explain the outcomes of a decentralized economy. We expose the perspective of the Walrasian general equilibrium models, showing that the structure of these models is inconsistent with the Walrasian claimed methodology, and argue that this inconsistency is not simply due to a shortcoming of the current Walrasian models, but is inherent to the Walrasian methodology. We argue that the time is ripe for a new methodological point of view on the modeling of a decentralized economy.

Nick Vriend, n.vriend@qmul.ac.uk
Last modified 2012-12-07