Market selection by boundedly-rational traders under constant returns to scale

Carlos Alós-Ferrer and Georg Kirchsteiger

Economics Letters, 2017, vol. 153, issue C, 51-53

Abstract: We consider a dynamic, stochastic model of trading-institution selection with boundedly-rational traders where sellers produce with constant unit costs. Traders will in general fail to coordinate exclusively on market-clearing institutions. Rather, any institution biasing the price upwards is stochastically stable.

Keywords: Trading institutions; Boundedly-rational traders; Stochastic stability (search for similar items in EconPapers)
JEL-codes: C72 D40 D83 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176517300538
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:153:y:2017:i:c:p:51-53

DOI: 10.1016/j.econlet.2017.02.008

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().