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

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 153
Issue: C
Pages: 51-53

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:153:y:2017:i:c:p:51-53
Journal Field
General
Author Count
2
Added to Database
2026-01-24