Indeterminacy of intertemporal equilibria under imperfect competition

B-Tier
Journal: Economic Theory
Year: 2001
Volume: 17
Issue: 2
Pages: 307-323

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

It is known that overlapping generations models with imperfectly competitive firms may exhibit a continuum of stationary equilibria. The reason of this indeterminacy is that different price expectation functions of consumers lead to different objective demand functions against which firms maximize. All these expectation functions fulfill perfect foresight in the equilibrium, but they can be arbitrary off the equilibrium. In this paper it is shown that it is not this arbitrariness which is responsible for the indeterminacy, but that the continuum of stationary equilibria emerges even if expectation functions are rational.

Technical Details

RePEc Handle
repec:spr:joecth:v:17:y:2001:i:2:p:307-323
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25