An asset market with backwards price comparative statics

Thomas Cone ()

Economics Bulletin, 2019, vol. 39, issue 4, 2441-2447

Abstract: A simple asset market is developed in which an increase in supply can increase the equilibrium price, and an increase in demand can decrease the price. The key economic feature of the market is risk aversion. Furthermore, the equilibrium with the backward comparative statics is learnable by the market participants, even if they don't start out fully-informed rational.

Keywords: Microeconomics; Demand theory; Asset markets; Learning (search for similar items in EconPapers)
JEL-codes: D4 G1 (search for similar items in EconPapers)
Date: 2019-11-03
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P226.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-19-00907

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().