Theory of Markets : Trade and Space-time Patterns of Price Fluctuations A Study in Analytical Economics

The purpose of the book is to investigate the foundations of international and interregional trade at the microeconomic level of spatially separated commodity markets. At this level, price arbitrage and local disparities in production and demand functions are the main determinants. The model, referred to as the Enke-Samuelson model, is developed step by step: first it is introduced in the perspective of spatial price equilibrium, then its dynamic extension is applied to non-equilibrium situations; finally it is formulated in the framework of random fields. The theoretical construction goes hand in hand with empirical investigation and the model is confronted against statistical evidence whenever it is possible