Modeling the Economic Interaction of Agents With Diverse Abilities to Recognize Equilibrium Patterns

We model differences among agents in their ability to recognize temporal patterns of prices. Using the concept of DeBruijn 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 recognized only by the more competent agents. (JEL: C7, D4, S477) Copyright (c) 2003 The European Economic Association.

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Year of publication:	2003
Authors:	Piccione, Michele ; Rubinstein, Ariel
Published in:	Journal of the European Economic Association. - MIT Press. - Vol. 1.2003, 1, p. 212-223
Publisher:	MIT Press

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005549616