Cointegration methods are increasingly used to test for market efficiency and integration. The economic rationale for these tests, however, is generally unclear. Using a simple spatial equilibrium model to simulate equilibrium price behavior, it is shown that prices in a well-integrated,...

A computer system for implementing electronic markets on networks of personal computers is described. The program allows a researcher or teacher to design market simulations to meet a variety of goals, and records a complete set of market activities for analysis. Illustrations of example markets...

We propose a method for solving continuous-state and action-stochastic dynamic programs that is a hybrid between the continuous space projection methods introduced by Judd and the discrete space methods introduced by Bellman. Our hybrid approach yields a smooth representation of the value...

The major mechanisms for the transference of price and output risk by crop producers are examined. These include the use of futures and options contracts, government price-support and deficiency-payments programs, and crop insurance. Iso-revenue curves are used to highlight the distinctions...