Market selection by boundedly-rational traders under constant returns to scale

Carlos Alós-Ferrer; Georg Kirchsteiger

doi:10.1016/j.econlet.2017.02.008

Market selection by boundedly-rational traders under constant returns to scale

Carlos Alós-Ferrer, Georg Kirchsteiger

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

We consider a dynamic, stochastic model of trading-institution selection with boundedly-rational traders where sellers produce with constant unit costs. Traders will in general fail to coordinate exclusively on market-clearing institutions. Rather, any institution biasing the price upwards is stochastically stable.

Original language	English (US)
Pages (from-to)	51-53
Number of pages	3
Journal	Economics Letters
Volume	153
DOIs	https://doi.org/10.1016/j.econlet.2017.02.008
State	Published - Apr 1 2017

Keywords

Boundedly-rational traders
Stochastic stability
Trading institutions

ASJC Scopus subject areas

Finance
Economics and Econometrics

Access to Document

10.1016/j.econlet.2017.02.008

Cite this

@article{a486626c3d054ac5bf7ceee22652b5ea,

title = "Market selection by boundedly-rational traders under constant returns to scale",

abstract = "We consider a dynamic, stochastic model of trading-institution selection with boundedly-rational traders where sellers produce with constant unit costs. Traders will in general fail to coordinate exclusively on market-clearing institutions. Rather, any institution biasing the price upwards is stochastically stable.",

keywords = "Boundedly-rational traders, Stochastic stability, Trading institutions",

author = "Carlos Al{\'o}s-Ferrer and Georg Kirchsteiger",

note = "Funding Information: We thank Johannes Buckenmaier and an anonymous referee for helpful comments. The authors gratefully acknowledge financial support from the German Research Foundation (DFG)under project Al-1169/5. Publisher Copyright: {\textcopyright} 2017 Elsevier B.V.",

year = "2017",

month = apr,

day = "1",

doi = "10.1016/j.econlet.2017.02.008",

language = "English (US)",

volume = "153",

pages = "51--53",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier",

}

TY - JOUR

T1 - Market selection by boundedly-rational traders under constant returns to scale

AU - Alós-Ferrer, Carlos

AU - Kirchsteiger, Georg

N1 - Funding Information: We thank Johannes Buckenmaier and an anonymous referee for helpful comments. The authors gratefully acknowledge financial support from the German Research Foundation (DFG)under project Al-1169/5. Publisher Copyright: © 2017 Elsevier B.V.

PY - 2017/4/1

Y1 - 2017/4/1

N2 - We consider a dynamic, stochastic model of trading-institution selection with boundedly-rational traders where sellers produce with constant unit costs. Traders will in general fail to coordinate exclusively on market-clearing institutions. Rather, any institution biasing the price upwards is stochastically stable.

AB - We consider a dynamic, stochastic model of trading-institution selection with boundedly-rational traders where sellers produce with constant unit costs. Traders will in general fail to coordinate exclusively on market-clearing institutions. Rather, any institution biasing the price upwards is stochastically stable.

KW - Boundedly-rational traders

KW - Stochastic stability

KW - Trading institutions

UR - http://www.scopus.com/inward/record.url?scp=85012096159&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85012096159&partnerID=8YFLogxK

U2 - 10.1016/j.econlet.2017.02.008

DO - 10.1016/j.econlet.2017.02.008

M3 - Article

AN - SCOPUS:85012096159

SN - 0165-1765

VL - 153

SP - 51

EP - 53

JO - Economics Letters

JF - Economics Letters

ER -

Market selection by boundedly-rational traders under constant returns to scale

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this