Price Expectations, Cobwebs and Stability

Flam SD & Kaniovski YM (1997). Price Expectations, Cobwebs and Stability. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-97-014

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Abstract

There is given a market for several perishable goods, supplied under technological randomness and price uncertainty. We study whether and how producers eventually may learn rational price expectations. The model is of cobweb type. Its dynamics fit standard forms of stochastic approximation. Relying upon quite weak and natural assumptions we prove new convergence results.

Item Type: Monograph (IIASA Interim Report)
Uncontrolled Keywords: cobweb models, adaptive learning, rational expectations, stochastic approximation, fixed point, stability.
Research Programs: Technological and Economic Dynamics (TED)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:09
Last Modified: 30 Oct 2016 17:07
URI: http://pure.iiasa.ac.at/5277

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