Buy low, sell high: Price gaps and neoclassical theory
This paper considers the simple neoclassical economics of price gaps in the absence of income effects. Our guiding principle is that price gaps reflect a fundamental economic principle: buy low and sell high. It is demonstrated that neoclassical theory makes clear and economically testable predictions about these price gaps.
Year of publication: |
2009
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Authors: | Chambers, Robert G. ; Melkonyan, Tigran A. |
Published in: |
Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 45.2009, 11, p. 720-729
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Publisher: |
Elsevier |
Keywords: | Willingness to accept Willingness to pay Price gap |
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