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Attainment of equilibrium via Marshallian path adjustment: Queueing and buyer determinism

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  • Collins, Sean M.
  • James, Duncan
  • Servátka, Maroš
  • Vadovič, Radovan

Abstract

We examine equilibration in a market where Marshallian path adjustment can be enforced, or not, as a treatment: a posted offer market either with buyer queueing via value order, or random order, respectively. We derive equilibrium predictions, and run experiments crossing queueing rules with either human or deterministically optimizing robot buyers under both locally stationary and non-stationary marginal cost. Results on rate of convergence to competitive equilibrium are obtained, and Marshallian path adjustment is established as conducive to attaining competitive equilibrium.

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  • Collins, Sean M. & James, Duncan & Servátka, Maroš & Vadovič, Radovan, 2021. "Attainment of equilibrium via Marshallian path adjustment: Queueing and buyer determinism," Games and Economic Behavior, Elsevier, vol. 125(C), pages 94-106.
    • Handle: RePEc:eee:gamebe:v:125:y:2021:i:c:p:94-106
    DOI: 10.1016/j.geb.2020.11.001
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    More about this item

    Keywords

    Posted offer; Advance production; Market entry game; Marshallian path adjustment; Equilibration;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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