A General Equilibrium Theorem for the Economy of Giving

Abstract

In [1] we presented a model for transactions when goods are given away in the expectation of a later settlement. In settings where people keep track of their social accounts we were able to redefine concepts like account balance, yield curve and the law of diminishing returns. In this paper we establish a general equilibrium theorem, conjectured in [1], by developing sufficient conditions for any instance of the standard model (or Gift Economy Model) to have a unique equilibrium. The convergence to that equilibrium is exponential and for each pair of entities P and Q the total sum of yields from all mutual transactions is equal to zero. [1] W.P. Weijland, Mathematical Foundations for the Economy of Giving, ArXiv Categories: q-fin.GN, Report 1401.4664, 2014.