Community Digest

Top new questions this week:

Is a mixed strategy ever the best response to a pure strategy?

Suppose you are playing a game against an opponent whom you know only uses pure strategies. My question is, is there any such game in which using a mixed strategy in response is better than all the ...

game-theory nash-equilibrium dominant-strategy  
asked by Keshav Srinivasan 4 votes
answered by induction_is_a_laddah 5 votes

What precisely is scarcity?

I'm aware that certain terms in economics have precise definitions that don't necessarily line up with our intuition about what they mean. I'm currently writing a paper that heavily relies on the ...

reference-request definition  
asked by K Pomykala 3 votes
answered by Giskard 9 votes

Do Keyensians believe that it's wrong for households to aggresively save money?

Many Austrian/Neoclassical websites argue that Keynes and Keynesians demonise saving and encourage individual people to spend rather than save. Someone (not an economist) recently told me that I need ...

new-keynesian-economics keynesian-economics austrian classical-economics  
asked by Statsanalyst 3 votes
answered by Kent Shikama 0 votes

Difference between unemployment rate between ILO and bureau of labor statistics

Why there are differences between the unemployment rate of the US between the data of the bureau of labor statistics and the ILO (international labor organization). Have they different definitions of ...

data-request statistics unemployment  
asked by LaLeLo 2 votes
answered by anguyen1210 0 votes

Which market category does this sustainable product belong to?

I'm currently working on an assignment, which is making an export plan for a product aimed at Asia. However I can't define the market of my product. My product is basically an artificial riverbank; ...

asked by Timber Fedor 2 votes
answered by heh 1 vote

Linking creeping inflation to industrial revolution

The russian wiki on price revolution says Ползучая инфляция стала тем стимулом, который привёл в конечном итоге к промышленной революции, which translates to in the end result, the creeping inflation ...

inflation automation  
asked by WhatHiFi 2 votes

Why charge higher interest rates to poorer customers?

Consumer loans/credit charge different rates depending on the individual's risk. In particular, it charges more to poorer individuals. Whilst this seems to make sense from a risk perspective, there ...

interest-rate risk consumer-credit  
asked by Danny_R 1 vote

Greatest hits from previous weeks:

How does buying/selling houses affect the GDP?

Suppose I buy a house and sell it off in the same year for the same price, would the GDP for that year increase by twice the value of the house, or only once, or not at all?

asked by Axel Boldt 6 votes
answered by BKay 10 votes

What's the difference between public debt, government debt and national debt?

When it comes to non-private debt, I hear these three terms the most, but I am not sure if they're interchangeable or discernible. Also, are they recorded in the balance of payments? I'm guessing if ...

debt government-debt  
asked by user98937 4 votes
answered by Henry 3 votes

What happens to a country with lot of debt?

What happens to a country with lot of debt? As far as I know, debt is a way to get hands on extra money which will put burden on the future governments. What if every successive government keeps ...

asked by Yashas 8 votes

Quasilinear Utility Functions

We know if the utility function is quasilinear (QL) w.r.t good 1, then the demand for other goods is independent of income (no income effect for goods $(2,\dots, N)$). But is the reverse implication ...

utility consumer-theory  
asked by user200947 6 votes
answered by FooBar 2 votes

How interest rate affects currency

I am quite new to economics. I was reading about changes in interest rates and its effect on currency value. The fact is as interest rates increases, the currency value also increases and vice ...

macroeconomics currency inflation interest-rate  
asked by Mahesha999 9 votes
answered by BB King 4 votes

What is a rational consumer?

There is a lot of debate on whether or not consumers and investors are rational. Unfortunately, I haven't seen much qualification for what is called a rational consumer. What are the requirements ...

reference-request consumer-theory  
asked by EconJohn 6 votes
answered by Tobias 5 votes

Equilibrium price and quantity - consumer and producer surplus

Inverse function of market demand for certain good is equal to $P=100-0.25Q$, inverse supply function is $P=20+0.55Q$. Calculate equilibrium price and quantity. Furthermore calculate consumer and ...

microeconomics general-equilibrium producer-theory consumer-surplus producer-surplus  
asked by Krowskir 4 votes
answered by Alecos Papadopoulos 1 vote

Can you answer these questions?

Regarding the Expenditure Function Underlying a Bliss Point

I've been looking at expenditure systems and have been really interested in the behaviour of the demand system that underlies bliss points: Consider the bliss point utility function of the following ...

microeconomics mathematical-economics  
asked by EconJohn 1 vote

Can i get rich if i apply the Black Scholes equation or other mathematics in economy?

Is it the Black-Scholes equation useful if i want to invest in stock market ? how can i profit from using this equation in stock market ?

asked by Jose Javier Garcia 1 vote

Strategic Complementarities and Multiplicity

Consider a coordination game, in which actions taken by players are strategic complements. Moreover, assume that actions are strong strategic complements, in that the slope of the best response ...

macroeconomics game-theory  
asked by Student 1 vote
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