Showing 1 - 8 of 8
We look at price formation in a retail setting, that is, companies set prices, and consumers either accept prices or go someplace else. In contrast to most other models in this context, we use a two-dimensional spatial structure for information transmission, that is, consumers can only learn...
Persistent link: https://www.econbiz.de/10005260375
Many of the applications of game theory have been to economics where the individuals under study are assumed to be maximizing profits or Òutility'' or some other conventional economic goal of Òstatus.'' Loosely stated we think of status as one's position in a society compared with others,...
Persistent link: https://www.econbiz.de/10005790709
The relationship between money and credit is developed in terms of "know-who" networks. It is suggested that the link between dynamics and equilibrium theory in economics can be built by regarding the noncooperative no-credit and the general equilibrium models as providing lower and upper bounds...
Persistent link: https://www.econbiz.de/10005790788
We study stationary Markov equilibria for strategic, competitive games, in a market-economy model with one non-durable commodity, fiat money, borrowing/lending through a central bank or a money market, and a continuum of agents. These use fiat money in order to offset random fluctuations in...
Persistent link: https://www.econbiz.de/10005790824
We construct explicit equilibria for strategic market games used to model an economy with fiat money, one nondurable commodity, countably many time- periods, and a continuum of agents. The total production of the commodity is a random variable that fluctuates from period to period. In each...
Persistent link: https://www.econbiz.de/10005790933
The basic role of fiat money in a dynamic economy is considered. Its role as a virtual asset whose store of value properties are the outcome of the dynamics is explored and the role of the limits on the money supply and the bankruptcy laws in bounding prices are considered. The actions of the...
Persistent link: https://www.econbiz.de/10005790983
In this paper we study the relationship between the stability of a competitive equilibrium (CE) and the price adjustment mechanism used to attain that equilibrium point. Using two specific examples, a three- commodity exchange economy with a unique competitive equilibrium (Scarf's global...
Persistent link: https://www.econbiz.de/10005791010
General equilibrium is timeless, and without outside money, the price system is homogeneous of order zero. Some finite horizon strategic market game models are considered with an initial issue of fiat money held as an asset. For any arbitrary finite horizon, the solution is time-dependent. In...
Persistent link: https://www.econbiz.de/10005791056