Piccione, Michele and Rubinstein, Ariel (2002) Modelling the economic interaction of agents with diverse abilities to recognise equilibrium patterns. Theoretical Economics; TE/2002/440, TE/02/440. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.
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We model differences among agents in their ability to recognise temporal patterns of prices. Using the concept of DeBruijin sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and that can be recognised only by the more competent agents.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2002 the authors|
|Uncontrolled Keywords:||DeBruijin, price fluctuations, sunspots, bounded rationality, bounded recall.|
|Library of Congress subject classification:||H Social Sciences > HB Economic Theory|
|Journal of Economic Literature Classification System:||D - Microeconomics > D4 - Market Structure and Pricing
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory
|Sets:||Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
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