Anagnostopoulos, Alexis (contributor); … - 2006
time t, �rms announce prices and engage on satisfying demand at these
prices until they run out of stock. As a consequence … such a case, these �rms are said to be quantity constrained by a demand shortage.
The representative individual uses her … that any excess demand is
3See Lucas and Stokey (1987) and Woodford (1994).
3
proportionally distributed across …