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exemplifies how heterogeneity concerning the volatility of two stochastic processes may lead to chaotic motion; the second is a …
Persistent link: https://www.econbiz.de/10005125624
The diffusion of two competitive, interchangeable, and durable goods is studied under the framework of a spatial game where consumers are distributed on a two-dimensional square lattice and play 3$\times$3 symmetric coordination-like games with their nearest neighbors. There are three...
Persistent link: https://www.econbiz.de/10005407515
In this paper we argue that authorities aid cooperation by means of direct coordination or the enforcement of pre-commitment devices such as contract laws.Credible threats of violence allow this role. In a local interaction model, an authority forms if mutually connected individuals with...
Persistent link: https://www.econbiz.de/10005412451
In this paper we consider the way in which authorities arise in response to the need for coordination. In a model of local interaction, an authority is understood as a self-enforcing coordination selection structure, where the threat of violence ensures compliance. Such authorities form if...
Persistent link: https://www.econbiz.de/10005550871
This paper examines optimal social linkage when each individual's repeated interaction with each of his neighbors creates spillovers. Individuals differ across rates of time preference. A planner must choose a local interaction system or neighborhood design before observing the realization of...
Persistent link: https://www.econbiz.de/10005550940
We consider a local interaction model with a population on an h dimensional torus, in which in each round of play a random player gets a learning draw. This player plays a k+1 action stage game with players in his neighborhood, compares his own average payoff with the average payoff of the...
Persistent link: https://www.econbiz.de/10005118616
We derive fundamental new theory for measuring monetary service flows aggregated over countries within a multicountry economic union. We develop three increasingly restrictive approaches: (1) the heterogeneous agents approach, (2) the multilateral representative agent approach, and (3) the...
Persistent link: https://www.econbiz.de/10005412714
We derive fundamental new theory for measuring monetary service flows aggregated over countries within the European Monetary Union (EMU). We develop three increasingly restrictive approaches: (1) the heterogeneous agents approach, (2) the multilateral representative agent approach, and (3) the...
Persistent link: https://www.econbiz.de/10005412834
to those of the S&P500 index, which is characterized by excess kurtosis, volatility clustering and long memory. …
Persistent link: https://www.econbiz.de/10005413058
This paper examines the mutually reinforcing interactions between exchange rate dynamics and technical trading strategies. I first show that technical trading systems have been quite profitable during the floating rate period. This profitability stems from the successful exploitation of...
Persistent link: https://www.econbiz.de/10005561584