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Persistent link: https://www.econbiz.de/10005564858
This article investigates the stability properties of markets with backward-bending supply curves. Parameters are chosen so that the two classic models of price dynamics, the Walrasian model and the Marshallian model, give opposite predictions. The results are (1) market instability can be...
Persistent link: https://www.econbiz.de/10005564882