This study investigates the nature of price expectations in a competitive market. The approach is illustrated in an application to the U.S. pork market, which exhibits cyclical patterns and biological production lags. Pork price equations are estimated under different expectation regimes. The empirical results suggest the presence of heterogeneous price expectations among market participants. A...

This paper presents a conceptual design for an agent-based bilateral residential land market. The design includes interactions between multiple buyers and sellers (household agents, developers, and rural land owners) and two local feedbacks to land value—price expectation formation based on local neighborhoods and spatial externalities. To address the methodological challenges inherent in the t...

This paper presents an alternative characterization of internal Cournot equilibrium based on the first-order conditions corresponding to profit maximization over prices. This characterization is particularly useful when the market is described in terms of demand functions (rather than inverse-demand functions). A significant computational advantage is gained in homogeneous good cases as demand ...

We show that for a specific class of random matching Edgeworthian economies, the expectation of the limiting equilibrium price coincides with the equilibrium price of the related Walrasian economies. This result extends to the study of economies in the presence of uncertainty within the multi-period Arrow-Debreu model, allowing to understand the dynamics of how beliefs survive and propagate thr...

a r t i c l e i n f o JEL classifications: C51 N70 Keywords: Crude oil price volatility GARCH Covariates Modified dummy variables OPEC announcements WTI crude oil Several times a year, OPEC hosts conferences among its members to agree on further oil production policies. Prior to OPEC conferences, there is usually rampant speculation about which decision concerning world oil production levels (n...

MOTIVATION Although constraint-based flux analysis of knockout strains has facilitated the production of desirable metabolites in microbes, current screening methods have placed a limitation on the number knockouts that can be simultaneously analyzed. RESULTS Here, we propose a novel screening method named FastPros. In this method, the potential of a given reaction knockout for production of ...

In EU countries, knowledge on spatial disparities in overall price level is extremely scarce. When interregional price disparities are large, however, nominal income measures fail to assess prosperity and the catch-up processes of regions. Despite its importance for regional policy, no official regional price statistic is available as a standard. On account of this gap, this paper deals with th...

We study the capacity allocation problem in service overlay networks (SON)s with state-dependent connection routing based on revenue maximization. We formulate the dimensioning problem as one in profit maximization and propose a novel model with several new features. In particular the proposed methodology employs an efficient approximation for state dependent routing that reduces the cardinalit...

In frictionless markets, utility maximization problems are typically solved either by stochastic control or by martingale methods. Beginning with the seminal paper of Davis and Norman [Math. Oper. Res. 15 (1990) 676–713], stochastic control theory has also been used to solve various problems of this type in the presence of proportional transaction costs. Martingale methods, on the other hand, h...

The problem of ranking a set of items is a fundamental algorithmic task in today’s datadriven world. Ranking algorithms lie at the core of applications such as search engines, news feeds, and recommendation systems. However, recent events and studies show that bias exists in the output of such applications. This results in unfairness or decreased diversity in the presentation of the content and...