This article aims at a new approach for a known fundamental result: barter or trade increases economic value. It successfully bridges the gap between the theory of value and the exchange process attached to the transition from endowments to the equilibrium in the core and contract curve. First, we summarise the theory of value; in Section 2, we present the Edgeworth (1881) box and an axiomatic approach and in Section 3, we apply our pure exchange model. Finally (in Section 4), using our open econo-physics pure barter (EPB) model, we derive an improvement in value, which means that pure barter leads to a decline in depreciation rate.
|Journal||Physica A-Statistical Mechanics And Its Applications|
|Publication status||Published - 1 Feb 2014|
- Depreciation rate
- Econo-physics pure barter model (EPB)
- Edgeworth box
- Pure barter
- Theory of value