This paper characterizes the set of Nash equilibria in a price setting duopoly in which firms have limited capacity, and in which unit costs of production up to capacity may differ. Assuming concave revenue and efficient rationing, we show that the case of different unit costs involves a tractable generalization of the methods used to analyze the case of identical costs. However, the supports o...

The power of agent-based modelling (ABM), when integrated with other AI-based and conventional approaches, can be greatly enhanced. The resulting hybrid systems offer a flexible modelling environment that exploits the benefits of the component methods. In particular, the ABM paradigm can be used to explore and understand systems that are governed by complex, non-linear relationships and self-or...

Asset prices and returns are known to vary signi®cantly more than output or aggregate consumption growth, and an order of magnitude in excess of what is justi®ed by innovations to fundamentals. We study excess price volatility in a lifecycle economy with two assets (claims on capital and a public debt bubble), heterogeneous agents, and increasing returns to ®nancial intermediation. We show that...

Price dispersion is analyzed in the context of a queuing market where customers enter queues to acquire a good or service and may experience delays. With menu costs, price dispersion arises and can persist in the medium and long run. The queuing market rations goods in the same way whether firm prices are optimal or not. Price dispersion reduces the rate at which customers get the good and redu...

the purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. more specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. the results indicate that this theory provides a good description of the spatial structure of w...

Agent-based simulations show that some kinds of speculators are able to stabilize the price in a market and to make this market more efficient. Instead of a single market, we consider a supply chain comprising a sequence of three markets in order to check that such speculators can also stabilize a supply chain. Specifically, we verify if these speculators reduce the price fluctuations caused by...