Modeling the Economic Interaction of Agents With Diverse Abilities to Recognize Equilibrium Patterns
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. (JEL: C7, D4, S477) Copyright (c) 2003 The European Economic Association.
Volume (Year): 1 (2003)
Issue (Month): 1 (03)
|Contact details of provider:|| Web page: http://www.mitpressjournals.org/jeea|
|Order Information:||Web: http://www.mitpressjournals.org/jeea|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rubinstein, Ariel, 1993.
"On Price Recognition and Computational Complexity in a Monopolistic Model,"
Journal of Political Economy,
University of Chicago Press, vol. 101(3), pages 473-484, June.
- Rubenstein, A., 1991. "On Price Recognition and Computational Complexity in a Monopolistic Model," Papers 35-91, Tel Aviv.
- Ben-Porath Elchanan, 1993.
"Repeated Games with Finite Automata,"
Journal of Economic Theory,
Elsevier, vol. 59(1), pages 17-32, February.
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
- Sabourian, Hamid, 1998. "Repeated games with M-period bounded memory (pure strategies)," Journal of Mathematical Economics, Elsevier, vol. 30(1), pages 1-35, August.
- Itzhak Gilboa & David Schmeidler, 1989.
"Infinite Histories and Steady Orbits in Repeated Games,"
846, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gilboa Itzhak & Schmeidler David, 1994. "Infinite Histories and Steady Orbits in Repeated Games," Games and Economic Behavior, Elsevier, vol. 6(3), pages 370-399, May.
- Itzhak Gilboa & David Schmeidler, 1994. "Infinite Histories and Steady Orbits in Repeated Games," Post-Print hal-00481357, HAL.
- Lehrer, Ehud, 1988. "Repeated games with stationary bounded recall strategies," Journal of Economic Theory, Elsevier, vol. 46(1), pages 130-144, October.
- O. Gossner & P. Hernandez, 2001.
"On the complexity of coordination,"
THEMA Working Papers
2001-21, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Lehrer Ehud, 1994. "Finitely Many Players with Bounded Recall in Infinitely Repeated Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 390-405, November.
- Rubinstein, Ariel, 1991. "Comments on the Interpretation of Game Theory," Econometrica, Econometric Society, vol. 59(4), pages 909-924, July.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414.
When requesting a correction, please mention this item's handle: RePEc:tpr:jeurec:v:1:y:2003:i:1:p:212-223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites)
If references are entirely missing, you can add them using this form.