We examine whether the ‘fear’ of globalisation can be rationalised by economic theory. To do so, we depart from the standard AD/AS (partial) equilibrium model where the coordinational role of the Auctioneer is substituted by an implementation device based on learning (Guesnerie, [11]). By endowing producers with a learning ability to forecast market prices, individual profit-maximizing producti...

The pure exchange model is the foundation of the neoclassical theory of value, yet equilibrium predictions and models of price adjustment for this model remained untested prior to the experiment reported in this paper. With the exchange economy replicated several times, prices and allocations converge sharply to the competitive equilibrium in continuous double auction (CDA) trading. Convergence...

This paper extends the Glosten and Milgrom (1985) model of asset pricing with asymmetric information into a dynamic setting and presents a model of market price manipulation. The paper shows that there is a unique equilibrium and characterizes the equilibrium. It is shown that the nextperiod value function of the informed trader, who knows the terminal value of the asset, is strictly monotone i...

In this paper we apply the recently developed fractionally cointegrated vector autoregressive (FCVAR) model to analyze price discovery in the spot and futures markets for five non-ferrous metals (aluminium, copper, lead, nickel, and zinc). The FCVAR model allows for long memory (fractional integration) in the equilibrium errors, and, following Figuerola-Ferretti and Gonzalo (2010), we allow for...

We model how excess demand or excess supply can be generated in the presence of a social network of interactions, where agents are subject to external information and individual incentives. In this context we study price fluctuations in financial markets under equilibrium. In particular, we isolate the role of these different factors in the determination of price fluctuations and describe non t...

The competitive price game model is used to analyze the spectrum sharing in the cognitive radio networks. This paper focuses on the improved spectrum sharing problem with constraints of available spectrum resource from primary users. The constrained spectrum sharing model based on competitive price game is established. In order to achieve the spectrum sharing strategy that satisfies the constra...

This paper estimates a search and matching model of the aggregate labor market with sticky price and staggered wage negotiation. It starts with a partial equilibrium search and matching model and expands into a general equilibrium model with sticky price and staggered wage. I study the quantitative implications of the model. The results show that (1) the price stickiness and staggered wage are ...

This paper examines conditions for the uniqueness of an equilibrium price distribution in stochastic macroeconomic models with rational expectations. A model is developed in which many price distributions, each with a finite variance, satisfy the equilibrium requirements of rationality. Hence, the condition that the variance of the equilibrium price distribution be finite, or equivalently, that...

This paper analyzes regulatory intervention when firms exploit consumers who are myopic in their decision making. As shown by Gabaix and Laibson (2006), a potential equilibrium price strategy of firms involves excessively high-priced add-ons and shrouding of add-on prices, which leads to a social welfare loss and consumer protection problems. Our model introduces a price discrimination equilibr...