This note presents an analytical method to examine when, why, and how rules of price normalization have an impact on noncompetitive equilibria in Arrow-Debreu economies. For simple prototype economies it is shown that under smooth strict convexity of preferences and technologies regular...

This note shows that in a large class of El Farol models the failure of agents to find rational prediction rules which stabilize is not due to a non-existence of perfect rules, but rather to the failure of agents to identify the correct class of predictors from which the perfect ones can be...

This paper analyzes the implications of bilateral bargaining over wages and employment between a producer and a union representing a finite number of identical workers in a monetary macroeconomic model of the AS AD type with government activity. Wages and aggregate employment levels are set...