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

Michele Piccione; Ariel Rubinstein

doi:10.1162/154247603322256819

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

Michele Piccione, Ariel Rubinstein

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

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 language	English (US)
Pages (from-to)	212-223
Number of pages	12
Journal	Journal of the European Economic Association
Volume	1
Issue number	1
DOIs	https://doi.org/10.1162/154247603322256819
State	Published - Mar 2003

ASJC Scopus subject areas

General Economics, Econometrics and Finance

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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.",

author = "Michele Piccione and Ariel Rubinstein",

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

Abstract

ASJC Scopus subject areas

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