Self-fulfilling mechanisms and rational expectations in large markets
Article Abstract:
The introduction of self-fulfilling mechanism, which does not use specific commodity as money, by Forges and Minelli, is discussed. This approach is proposed to replace the rational expectations equilibrium (REE) that does not explain the flow of information into the prices. But, it is speculated that the self-fulfilling mechanism cannot provide traders with the information fully revealed by REE prices.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2003
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Convergence to no arbitrage equilibria in market games
Article Abstract:
The sources for the failure of 'law of one price' are identified through various market games. The identifications reveal that the existence of arbitrage in the market is dynamic only to a certain extent till the marketers are infinite, later which it becomes tangent, and that the increase in the number of markets keeps the equilibria upwards.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2003
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The limit-price mechanism
Article Abstract:
The windows model of Shapley, a strategic market game, extends the usual two commodity trading setup to multi commodity system, and the consequent market mechanisms change the whole pricing systems. This linear mathematical model is clearly delineated.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2003
User Contributions:
Comment about this article or add new information about this topic:
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