Abstract

This paper investigates the stability of a small, highly stylized economy, which has imperfectly informed traders visiting markets sequentially. Trading out of equilibrium is allowed. Roughly speaking, this system is found to be stable, even though spillovers are present, as long as the direct effects of price changes dominate the spillovers.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call