ABSTRACT
The paper summarizes some issues involved in developing a theory of decentralized resource allocation mechanism in infinite horizon economies. Even in a classical environment, a competitive mechanism may lead to an inefficient or non-optimal allocation for an infinite horizon economy. It remains, however, to explore whether the usual price-quantity messages can be supplemented to design decentralized mechanisms generating optimal outcomes. Journal of Economic Literature Classification Numbers: 022, 027, 111, 113. © 1988 Academic Press, Inc.
