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We develop a theory of equilibrium market volatility in a general equilibrium duopoly with complete information. The resulting economic system possesses a property, which can be described as ‘natural volatility' of markets, even if players have complete information.Economy is described as a...
Persistent link: https://www.econbiz.de/10012895422
We are constructing an imperfect competition general equilibrium model, with non-consumable money and labor market; our toolkit is an equilibrium default model of Shubik-Wilson (1978). Our result has an ‘equilibrium volatility' simultaneously occurring at all three markets: labor, goods, and...
Persistent link: https://www.econbiz.de/10012895423
. Resulting market price does not have information discovery properties. We demonstrate the multiplicity of Pareto-improving pure …
Persistent link: https://www.econbiz.de/10012912107
ordinary price comparisons between different states, present and future, has stemmed from a focus on consumption as the sole … in all states, and price indeterminancy is thereby removed. All contracts issued in the financial markets can be … of proving existence in that setting, not merely in a generic sense and without normalizing to a price simplex or …
Persistent link: https://www.econbiz.de/10013051812
Persistent link: https://www.econbiz.de/10013493412
in the international price of coffee for Uganda's economy. Evidence is found for a small effect on both medium …
Persistent link: https://www.econbiz.de/10014183126
. For an n- commodity economy there are 2n equilibrium equations for the 2n prices. The introduction of a two price labor …
Persistent link: https://www.econbiz.de/10012837724
After the existence of general equilibrium was proved in the early 1950s, the next decade brought applications of general-equilibrium theory to policy issues such as the welfare effects of tariffs and the incidence of the corporate income tax. By the 1970s, general-equilibrium theory was being...
Persistent link: https://www.econbiz.de/10012935915
This paper develops an equilibrium model of proof-of-work cryptocurrencies. Equilibrium behaviour of miners and users are characterized for exogenous blockchain protocol metrics. This paper shows that an equilibrium between miners and users can be achieved in the long run. High fixed mining...
Persistent link: https://www.econbiz.de/10012852569
We offer new sufficient conditions ensuring demand is downward sloping local to equilibrium. It follows that equilibrium is unique and stable in the sense that rising supply implies falling prices. In our setting, there are two goods, which we interpret as consumption in different time periods,...
Persistent link: https://www.econbiz.de/10012984614