Modeling the economic interaction of agents with diverse abilities to recognize equilibrium patterns

Michele Piccione, Ariel Rubinstein

    Research output: Contribution to journalArticle

    Abstract

    We model differences among agents in their ability to recognize temporal patterns of prices. Using the concept of DeBruijn sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and that can be recognized only by the more competent agents.

    Original languageEnglish (US)
    Pages (from-to)212-223
    Number of pages12
    JournalJournal of the European Economic Association
    Volume1
    Issue number1
    DOIs
    StatePublished - 2003

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    Economics
    Interaction
    Modeling
    Existence of equilibrium

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

    Cite this

    Modeling the economic interaction of agents with diverse abilities to recognize equilibrium patterns. / Piccione, Michele; Rubinstein, Ariel.

    In: Journal of the European Economic Association, Vol. 1, No. 1, 2003, p. 212-223.

    Research output: Contribution to journalArticle

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