A goal of this paper is to compare results for discriminatory auctions to results for uniform-price auctions when suppliers have capacity constraints. We have a pretty good understanding of what equilibrium results look like for the uniform-price auctions. But an unresolved problem is what happens when a discriminative auction is run and suppliers have capacity constraints. We formulate a suppl...

This paper evaluates the effectiveness of the private sector maize marketing system in Malawi using threshold autoregression models. Two dimensions of maize market performance are evaluated: (1) inter-regional trade and spatial price transmission; and (2) storage and seasonal price relationships. In both cases, threshold autoregression models which account for nonlinearities predicted by econom...

The inclusion of spatial correlation of house price in hedonic pricing model may produce better marginal implicit price estimate(s) of the environmental variable(s) of interest. Most applications where a spatial econometric model is applied to the estimation of a hedonic property value model have used either a spatial lag model or a spatial autoregressive (SAR) error model. Incorrect spatial sp...

In competitive equilibrium, non-binding price controls (that is, price floors below and ceilings above the equilibrium) should have no effect on market outcomes, but in laboratory experiments they do. We build a simple dynamic model of double auction markets with “zero-intelligence” (ZI) computer traders that accounts for many, though not all, of the discrepancies between the data and the Walra...

We analyze an exchange economy in which (i) all commodities except money are indivisible, (ii) agents' preferences can be described by a reservation value for each bundle of indivisible objects, and (iii) all agents are price-takers. We obtain a necessary and sufficient condition under which market clearing prices exist. Implications for market mechanisms are discussed. Journal of Economic Lite...

This paper studies an exchange economy with indivisibilities. Our main goal is to see if a price system can function well in an economy (e.g., an economy with complementary preferences) that does not have a Walrasian equilibrium. We study the price adjustment processes governed by the Euler iterative scheme. We show that in an economy that has a Walrasian equilibrium, our price adjustment proce...

This paper investigates price competition with private information on the demand side. Two sellers each offer a different variety of a good to a buyer endowed with a private binary signal on their relative quality. The model provides an informational foundation to differentiation in Hotelling's price competition game. Equilibrium comparative statics is performed with respect to the prior belief...

Models of spatial competition are typically static, and exhibit multiple freeentry equilibria. Incumbent firms can earn rents in equilibrium because any potential entrant expects a significantly lower market share (since it must fit into a niche between incumbent firms) along with fiercer price competition. Previous research has usually concentrated on the zero-profit equilibrium, at which ther...