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arXiv · 2602.20868

Decentralized Trading Networks: Equilibria and Fairness

Simon Finster·Paul W. Goldberg·Edwin Lock·Matilde Tullii
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Abstract

We explore stability and fairness considerations in decentralized networked markets with bilateral contracts, building on the trading networks framework [Hatfield et al., 2013]. In our trading network game, we show that a well-defined subset of Nash equilibria can be supported as competitive equilibria. Considering an offer-based trading dynamic as well as a stochastic price clock market, we prove new convergence results to Nash equilibrium and competitive equilibrium, providing a rationale for stability properties in decentralized, dynamic trading networks. Turning to the tension between fairness and (core) stability, we prove several negative results: inessential agents always receive zero utility in any core outcome, and even essential agents can get zero utility in all core outcomes.

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Simon Finster, Paul W. Goldberg, Edwin Lock, Matilde Tullii. 2026-02-24. Decentralized Trading Networks: Equilibria and Fairness. https://arxiv.org/abs/2602.20868

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