Emmons, William R. (contributor); … - 2004 - [Elektronische Ressource]
) (, ) ()
bb bb b b
jjij j j
x xpxxwxeπ
≠
=⋅−⋅− ,
where
b
j
x is the output of bank j, and
b
ij
x
≠
is a vector of expectations … amount of output,
b
j
x , subject to the
assumed conjectural variation. The bank's first-order condition is:
(5)
()
,
00
(1 … )
bb
jjij
bb
j
b
j
dxx
xpw
mN
dx
π
β
≠
==−+−=
−⋅
.
Solving the first-order condition for
b
j
x and aggregating over all …