Modeling the economic interaction of agents with diverse abilities to recognize equilibrium patterns

Michele Piccione*, Ariel Rubinstein

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

31 Scopus citations

Abstract

We model differences among agents in their ability to recognize temporal patterns of prices. Using the concept of DeBruijn sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and that can be recognized only by the more competent agents.

Original languageEnglish
Pages (from-to)212-223
Number of pages12
JournalJournal of the European Economic Association
Volume1
Issue number1
DOIs
StatePublished - Mar 2003

Fingerprint

Dive into the research topics of 'Modeling the economic interaction of agents with diverse abilities to recognize equilibrium patterns'. Together they form a unique fingerprint.

Cite this