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, UK.
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Abstract
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) |
|---|---|
| Official URL: | http://sticerd.lse.ac.uk |
| Additional Information: | © 2002 the authors |
| Divisions: | Economics STICERD |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | D - Microeconomics > D4 - Market Structure and Pricing C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory |
| Date Deposited: | 27 Apr 2007 |
| Last Modified: | 13 Sep 2024 19:46 |
| URI: | http://eprints.lse.ac.uk/id/eprint/2061 |
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