Wills-Johnson, Nick; Bloch, Harry - In: Economics Letters 108 (2010) 3, pp. 334-336
Maskin and Tirole (1998) formalise Edgeworth's (1925) model of a dynamic equilibrium between two players where prices increase sharply and decrease slowly; the Edgeworth Cycle. Here, we present an application of the model, showing how Edgeworth Cycles might arise in a marketplace where spatial...