The market equilibrium is achieved when all market players are satisfied with their position. On the other hand, the Nash equilibrium is achieved when none of the players can improve its position, i.e. profit on his own. The Nash equilibrium is the highest market equilibrium, irrespective of ...
According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in A. the price level. B. the interest rate. C. the exchange rate. D. real wealth.如何将EXCEL生成题库手机刷题 如何制作自己的在线小题库 > 手机使用 分享 反馈 收藏 举报 ...
An equilibrium price is achieved when certain demand/supply equations are satisfied. Attention is devoted to a specific case, in which the trading activity is based on trader groups and an infinitely divisible asset. Numerical simulations show that even a single stock market asset with two classes...
Additional units of a good should be produced as long asmarginal benefitexceedsmarginal cost. It would be inefficient to produce goods when themarginal benefitis less than themarginal cost. Therefore an efficient level of product is achieved whenmarginal benefitisequaltomarginal cost. Research buyers ...
Recollect that the neoclassical model is rather weak on the process by which the equilibrium is achieved. For Hayek and his followers, markets are never in equilibrium. The market mechanism is nevertheless very useful for co-ordinating economic activity among economic participants, because prices and...
When the market is in equilibrium, the price of the loans from bank A and bank B should be consistent: 𝑟1+(𝑡−𝑡1)𝑥2=𝑟2+(𝑡−𝑡1)(1𝑛−𝑥)2r1+t−t1x2=r2+t−t1(1n−x)2 (1) The shares of the loans provided by banks A and B to customers are ...
Our aim is to present, with our work, a new conceptual approach to model the recently deregulated power markets (Figure 1). The interaction of competitive agents in the electricity market is usually modeled through equilibrium problems that ensure profit maximization for all of the agents. For ...
Despite their dramatic impact, both bubbles and crashes have historically resolved themselves over time. Markets eventually find a new equilibrium as investor confidence is restored, economic fundamentals improve, and regulatory measures are implemented to prevent future excesses. This cyclical nature of m...
The best way to understand market failure is first to understand market success, the ability of a collection of idealized competitive markets to achieve an equilibrium allocation of resources which is Pareto optimal. This characteristic of markets, which was loosely conjectured by Adam Smith, has re...
In this context, the inflation targeting parameter should be higher than one for determinacy of rational expectations equilibria to be achieved. We compute an analytical solution for the bond pricing kernel. We also show that the possibility of obtaining this analytical solution depends on the type ...