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dc.contributor.authorSchinkel, Maarten-Pieter
dc.contributor.authorTuinstra, Jan
dc.contributor.authorVermeulen, Dries
dc.date.accessioned2011-12-29T07:15:41Z
dc.date.available2011-12-29T07:15:41Z
dc.date.issued2000-02
dc.identifier.issn1134-8984
dc.identifier.urihttp://hdl.handle.net/10810/5824
dc.description.abstractA central unanswered question in economic theory is that of price formation in disequilibrium. This paper lays down the methodological groundwork for a model that has been suggested as an answer to this question (Arrow, 1959; Fisher, 1983; Hahn, 1989). We consider sellers that monopolistically compete in prices but have incomplete information about the structure of the market they face. They each entertain a simple demand conjecture in which sales are perceived to depend on the own price only, and set prices to maximize expected profits. Prior beliefs on the parameters of conjectured demand are updated into posterior beliefs upon each observation of sales at proposed prices, using Bayes' rule. The rational learning process thus constructed drives the price dynamics of the model. Its properties are analysed. Moreover, a sufficient condition is provided, relating objectively possible events and subjective beliefs, under which the price process is globally stable on a conjectural equilibrium for almost all objectively possible developments of history.es
dc.language.isoenges
dc.relation.ispartofseriesBiltoki 2000.05
dc.rightsinfo:eu-repo/semantics/openAccesses
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/3.0/*
dc.subjectoligopolistic price settinges
dc.subjectbayesian learninges
dc.subjectconjectural equilibriumes
dc.subjectglobal stabilityes
dc.titleBayesian learning in mis-specified modelses
dc.typeinfo:eu-repo/semantics/workingPaperes
dc.rights.holderAttribution-NonCommercial-ShareAlike 3.0 Unported*
dc.subject.jelC11es
dc.subject.jelC51
dc.subject.jelC62
dc.subject.jelD21
dc.subject.jelD43
dc.subject.jelD83
dc.identifier.repecRePEc:ehu:biltok:200005es
dc.departamentoesEconomía aplicada III (Econometría y Estadística)es_ES
dc.departamentoeuEkonomia aplikatua III (ekonometria eta estatistika)es_ES
dc.subject.categoriaMICROECONOMICS
dc.subject.categoriaMATHEMATICAL AND QUANTITATIVE METHODS


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Attribution-NonCommercial-ShareAlike 3.0 Unported
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-ShareAlike 3.0 Unported