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A model of commodity trading consists of n traders, each bringingto the market his own individual good, and each having his own preferencefor the goods on the market. The trade results in a so-calledcore allocation, that is, an exchange of goods which cannot be destabilizedby a coalition of traders. Shapley and Scarf, who proposedSupported in part by NSF grant CCR-9024935ySupported in part by NSF grant DMS-9002347the model, proved the existence of such an exchange by means of an...

Probabilistic Analysis of an Algorithm in the Theory of Markets in Indivisible Goods