An Artificial Economics View of the Walrasian and Marshallian Stability

Marta Posada (), Cesáreo Hernández () and Adolfo López-Paredes ()
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Marta Posada: University of Valladolid
Cesáreo Hernández: University of Valladolid
Adolfo López-Paredes: University of Valladolid

Chapter 7 in Artificial Markets Modeling, 2007, pp 101-111 from Springer

Abstract: Abstract The experiments discussed below are an attempt to examine two concepts of instability which stem from two different models of market adjustment used in Economics: Walrasian (W) and Marshallian (M) instability. The M model views volume as adjusting in response to the difference between demand price and supply price at that volume. The W model views price as changing in response to excess demand at that price. Do the M and the W models have a firm foundation on micro-motives, or are they just macro abstractions that we could dispense of in Microeconomics?

Keywords: Marginal Cost; Reserve Price; Experimental Economic; Transaction Price; Market Adjustment (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-540-73135-1_7

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DOI: 10.1007/978-3-540-73135-1_7

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