scholarly journals Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions

2014 ◽  
Vol 2014 ◽  
pp. 1-11
Author(s):  
Agnès Bialecki ◽  
Eléonore Haguet ◽  
Gabriel Turinici
Keyword(s):  
Information Acquisition ◽  
Trading Volume ◽  
Lower Semicontinuous ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Equilibrium Price ◽  
Costly Information ◽  
Demand Functions ◽  
Systematic Biases ◽  
Period Model

We consider a two-period model in which a continuum of agents trade in a context of costly information acquisition and systematic heterogeneous expectations biases. Because of systematic biases agents are supposed not to learn from others' decisions. In a previous work under somehow strong technical assumptions a market equilibrium was proved to exist and the supply and demand functions were proved to be strictly monotonic with respect to the price. Here we extend these results under very weak technical assumptions. We also prove that the equilibrium price maximizes the trading volume and further additional properties (such as the antimonotonicity of the trading volume with respect to the marginal information price).

scholarly journals Market power analysis in Mongolian wheat industry

2020 ◽  
Vol 14 (3-4) ◽  
pp. 71-76
Author(s):  
Erdenebat Purev ◽  
Purev Byamba
Keyword(s):  
Market Economy ◽  
Power Analysis ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Economic Sector ◽  
Wheat Seed ◽  
Market Mechanisms ◽  
Demand Functions ◽  
Current State ◽  
Wheat Market

Mongolia has been in transition from a planned economy to a market economy for more than 20 years. In many sectors of the economy, it is necessary to define which market mechanisms exist. Grain occupies important economic sector in Mongolian economy. The current state of the wheat market has been studied based on NEIO research methods. In this study, the data for years from 2000 to 2017 and from 2007 to 2017 about wheat and wheat seed sector were taken through 6 indicators. We estimated the supply and demand functions for wheat and wheat seed. Using these functions, we defined market behavior, cost function, price elasticities, and market equilibrium. The capacity setting for product prices of wheat producers is weak, and this market is likely free-style competition.

scholarly journals Dynamic Scoring: Probabilistic Model Selection Based on Utility Maximization

Entropy ◽  
2019 ◽  
Vol 21 (1) ◽  
pp. 36 ◽  
Author(s):  
Jan Vecer
Keyword(s):  
Model Selection ◽  
Trading Volume ◽  
Utility Maximization ◽  
Supply And Demand ◽  
Demand Functions ◽  
Optimal Trading ◽  
Novel Approach ◽  
Probability Estimates ◽  
Betting Market ◽  
Selection For

We propose a novel approach of model selection for probability estimates that may be applied in time evolving setting. Specifically, we show that any discrepancy between different probability estimates opens a possibility to compare them by trading on a hypothetical betting market that trades probabilities. We describe the mechanism of such a market, where agents maximize some utility function which determines the optimal trading volume for given odds. This procedure produces supply and demand functions, that determine the size of the bet as a function of a trading probability. These functions are closed form for the choice of logarithmic and exponential utility functions. Having two probability estimates and the corresponding supply and demand functions, the trade matching these estimates happens at the intersection of the supply and demand functions. We show that an agent using correct probabilities will realize a profit in expectation when trading against any other set of probabilities. The expected profit realized by the correct view of the market probabilities can be used as a measure of information in terms of statistical divergence.

Costly information acquisition under horizontal competition

2018 ◽  
Vol 46 (4) ◽  
pp. 418-423
Author(s):  
Qi Fu ◽  
Yongquan Li ◽  
Kaijie Zhu
Keyword(s):  
Information Acquisition ◽  
Costly Information ◽  
Horizontal Competition

Competition with supply and demand functions

2001 ◽  
Vol 23 (3) ◽  
pp. 253-277 ◽  
Author(s):  
Friedel Bolle
Keyword(s):  
Supply And Demand ◽  
Demand Functions

Canada-U.S. softwood lumber dispute: background.

2021 ◽  
pp. 10-26
Author(s):  
G. Cornelis van Kooten ◽  
Harry Nelson ◽  
Fatemeh Mokhtarzadeh
Keyword(s):  
Supply And Demand ◽  
Tariff Rate ◽  
Gains From Trade ◽  
Excess Supply ◽  
Demand Functions ◽  
Softwood Lumber ◽  
Modeling Approaches ◽  
Tariff Rate Quotas ◽  
Export Taxes ◽  
History Of

Abstract In this chapter, we examine the importance of softwood lumber production to Canada's economy and provide a brief history of the Canada-U.S. softwood lumber dispute and its resolution on various occasions using U.S. countervailing and anti-dumping duties, export taxes or various types of quota regimes, including tariff rate quotas. The construction of excess supply and demand functions is explained, as are the gains from trade. This helps inform the modeling approaches that are identified in later chapters.

An Agent-Based Model to Forecast the Inflation Rate in the Eurozone

2017 ◽  
pp. 72-92
Author(s):  
Juan Luis Santos ◽  
Jagoda Anna Kaszowska ◽  
Tomás Mancha Navarro
Keyword(s):  
Financial Institutions ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Supply And Demand ◽  
Single Agent ◽  
Market Equilibrium ◽  
Agent Based Model ◽  
Agent Based ◽  
Long Run ◽  
Inflation Rates

The aim of the agent-based model presented in this chapter is to explain the determinants of inflation and to forecast the inflation rate in the Eurozone for the next five years. The behaviors of agents and their expectations are interrelated and explained by macroeconomic models applied to heterogeneous agents of three classes: individuals, companies and financial institutions. In addition, the behavior of public sector and central bank is also modeled with a single agent of each kind. Once the quantitative easing policy is implemented, the quantitative theory of money expects higher inflation rates in the long run. Inflation should remain low taking into account the Phillips-Curve. Last, according to the Aggregated Supply and Demand as well as to the Money Market equilibrium, the behaviors modeled allow forecasting low inflation. However, an external shock, as it would be an increase in the price of important commodities, can alter the inflation rate to a great extent.

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