Profit intensity and cases of non-compliance with the law of demand/supply

Marcin Makowski, Edward W. Piotrowski, Jan Sladkowski () and Jacek Syska

Physica A: Statistical Mechanics and its Applications, 2017, vol. 473, issue C, 53-59

Abstract: We consider properties of the measurement intensity ρ of a random variable for which the probability density function represented by the corresponding Wigner function attains negative values on a part of the domain. We consider a simple economic interpretation of this problem. This model is used to present the applicability of the method to the analysis of the negative probability on markets where there are anomalies in the law of supply and demand (e.g. Giffen’s goods). It turns out that the new conditions to optimize the intensity ρ require a new strategy. We propose a strategy (so-called à rebours strategy) based on the fixed point method and explore its effectiveness.

Keywords: Negative probabilities; Giffen’s goods; à rebours strategy; Supply and demand (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:473:y:2017:i:c:p:53-59

DOI: 10.1016/j.physa.2017.01.016

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