Modelling the economic interaction of agents with diverse abilities to recognise equilibrium patterns

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.

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Year of publication:	2002-10
Authors:	Piccione, Michele ; Rubinstein, Ariel
Institutions:	London School of Economics (LSE)
Subject:	DeBruijin \| price fluctuations \| sunspots \| bounded rationality \| bounded recall

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Extent:	application/pdf
Series:	LSE Research Online Documents on Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Theoretical Economics; TE/2002/440, TE/02/440 13 pages
Classification:	D4 - Market Structure and Pricing ; C7 - Game Theory and Bargaining Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010745837