Walras retrouve' : Decentralized trading mechanisms and the competitive price

We extend the standard analysis of decentralized markets to allow for the p ossibility that traders interact simultaneously with more than one trader o n the opposite side of the market. In contrast with the literature, we reco ncile the Walrasian equilibrium with the outcome of decentralized strategic trade: we show that there exist generic matching technologies that determi ne local market conditions such that, as market frictions vanish, the equil ibrium price is the one that would result in the static Walrasian market. O ur analysis highlights the importance of local market conditions for the de termination of equilibrium prices.