This paper develops a model of rational bubbles where trade of an asset takes place through a chain of middlemen. We show that there exists a unique and robust equilibrium, and a bubble can occur due to information frictions in bilateral and decentralized markets. Under reasonable assumptions,...

This volume contains six essays that develop and/or apply rational expectations equilibrium inventory models to study the time series behavior of production, sales, prices, and inventories at the industry level. This is an extension of the inventory model of Holt, Modigliani, Muth and Simon...