nach oben

Erschienen in:

2022 | OriginalPaper | Buchkapitel

6. Price Formation: General Equilibrium

verfasst von : Sabiou M. Inoua, Vernon L. Smith

Erschienen in: Economics of Markets

Verlag: Springer International Publishing

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This chapter extends the theory to multiple markets where, as in classical economics, wealth is explicitly treated as one of the determinants of reservation prices in market realizations.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Price Formation: Partial Equilibrium

Nächstes Kapitel Financial Instability: Re-tradable Assets and Speculation

For a recent multiple-market model of double-auction dynamics, see Asparouhova et al. (2020).

Since the horizon \(T\) is assumed given, it will be usually omitted. Yet it is important to keep in mind that the economy’s supply and demand apply to a given period \(\{ 0,...,T\} ,\) which includes the case where the limit \(T = \infty\) is considered. In all rigor, we should index the distribution of unit by \(T,\) writing, for example, \(M_{T}\) and \(N_{T} .\)

This is a standard property of line integration. See, for example, Apostol (1969, ch. 10).

A technical detail is omitted in the differentiation under the integral (or expectation) sign.

To wit: “A market…is theoretically perfect only when all have perfect knowledge of the conditions of supply and demand, and the consequent ratio of exchange; and…there can only be one ratio of exchange of one uniform commodity at any moment” (Jevons (1871 [1888], p. iv).

For a review of the neoclassical models of price adjustment and stability, see Negishi (1962), Hahn (1982), and Fisher (2013). Hahn, in his review of neoclassical price dynamics, said: “we shall have to conclude that we still lack a satisfactory descriptive theory of the invisible hand” (Hahn, 1982, p. 746).

For a review of SMD theorem and related aggregation literature see Shafer and Sonnenschein (1982). See also Kirman (1989) and Rizvi (2006).

Hotelling (1932).

In the mathematical theory of dynamics, an equilibrium, when it exists, derives from a dynamical representation of a system: it is not decided a priori and rationalized a posteriori.

Abdelmalek, N. N. (1974). On the discrete linear L1 approximation and L1 solutions of overdetermined linear equations. Journal of Approximation Theory, 11(1), 38–53.CrossRef

Apostol, T. M. (1969). Calculus, Volume II: Multi-variable calculus and linear algebra, with applications to differential equations and probability. Wiley.

Asparouhova, E., Bossaerts, P., & Ledyard, J. O. (2020). Price formation in multiple, simultaneous continuous double auctions, with implications for asset pricing (Social Science Working Paper 1450). California Institute of Technology. https://resolver.caltech.edu/CaltechAUTHORS:20200727-111303655

Barbashin, E., & Krasovskii, N. (1961). On stability of motion in the large. Dokl. Akad. Nauk. USSR, 86(3), 453–456.

Debreu, G. (1974). Excess demand functions. Journal of Mathematical Economics, 1(1), 15–21.CrossRef

Fisher, F. M. (2013). The stability of general equilibrium—What do we know and why is it important? In P. Bridel (Ed.), General equilibrium analysis (pp. 34–45). Routledge.

Gutenbrunner, C., & Jurecková, J. (1992). Regression rank scores and regression quantiles. The Annals of Statistics, 20, 305–330.

Hahn, F. (1982). Stability. In K. J. Arrow & M. D. Intriligator (Eds.), Handbook of mathematical economics (Vol. 2, pp. 745–793). North-Holland.

Hayek, F. A. (1945). The use of knowledge in society. The American Economic Review, 35(4), 519–530.

Hotelling, H. (1932). Edgeworth’s taxation paradox and the nature of demand and supply functions. Journal of Political Economy, 40(5), 577–616.CrossRef

Jevons, W. S. (1871 [1888]). The theory of political economy. Macmillan.

Kirman, A. (1989). The intrinsic limits of modern economic theory: The emperor has no clothes. The Economic Journal, 99(395), 126–139.CrossRef

Koenker, R. (2005). Quantile regression. Cambridge University Press.CrossRef

Koenker, R., & Bassett, G., Jr. (1978). Regression quantiles. Econometrica, 46(1), 33–50.CrossRef

Koenker, R., & Hallock, K. F. (2001). Quantile Regression. Journal of Economic Perspectives, 15(4), 143–156.CrossRef

Krasovskii, N. (1959 [1963]). Problems of the theory of stability of motion [Translated from Russian]. Stanford University Press.

LaSalle, J. P. (1960). Some extensions of Liapunov’s second method. IRE Transactions on Circuit Theory, 7(4), 520–527.CrossRef

Lyapunov, A. M. (1892). The general problem of the stability of motion (Doctoral Dissertation, in Russian). University of Kharkov, Kharkov Mathematical Society.

Mantel, R. (1974). On the characterization of aggregate excess demand. Journal of Economic Theory, 7(3), 348–353.CrossRef

Mohring, H. (1971). Alternative welfare gain and loss measures. Economic Inquiry, 9(4), 349.CrossRef

Negishi, T. (1962). The stability of a competitive economy: A survey article. Econometrica, 30(4), 635–669.CrossRef

Rizvi, S. A. T. (2006). The Sonnenschein-Mantel-Debreu results after thirty years. History of Political Economy, 38(suppl. 1), 228–245.CrossRef

Shafer, W., & Sonnenschein, H. (1982). Market demand and excess demand functions. In K. J. Arrow & M. D. Intriligator (Eds.), Handbook of mathematical economics (Vol. II, pp. 670–693). North Holland.

Silberberg, E. (1972). Duality and the many consumer’s surpluses. The American Economic Review, 62(5), 942–952.

Smith, A. (1776 [1904]). The Wealth of Nations (E. Cannan, Ed., Vol. I–II). Methuen.

Sonnenschein, H. (1972). Market excess demand functions. Econometrica, 40(3), 549–563.CrossRef

Sonnenschein, H. (1973a). Do Walras’ identity and continuity characterize the class of community excess demand functions? Journal of Economic Theory, 6(4), 345–354.CrossRef

Sonnenschein, H. (1973b). The utility hypothesis and market demand theory. Economic Inquiry, 11(4), 404–410.CrossRef

Wagner, H. M. (1959). Linear programming techniques for regression analysis. Journal of the American Statistical Association, 54(285), 206–212.CrossRef

Titel: Price Formation: General Equilibrium
verfasst von: Sabiou M. Inoua
Vernon L. Smith
Verlag: Springer International Publishing
Buch: Economics of Markets
Print ISBN: 978-3-031-08427-0

Electronic ISBN: 978-3-031-08428-7

Copyright-Jahr: 2022
DOI: https://doi.org/10.1007/978-3-031-08428-7_6