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Questions tagged [markets]

A market is an institutional arrangement in which buyers and sellers exchange goods, services, or information in transactions with or without money.

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30 views

If a firm produced 100 pens with a market value of $1 each, but only 50 were sold, what is the value added to the GDP? [duplicate]

Is it 100 dollars or 50 dollars? I'm assuming it is $100 because GDP is the total market value of all final products. Is this correct?
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Does the property values (or rental price) of a neighborhood/region increase with new residents taking up empty lots or apartments changing residency?

Does research explore the idea that there is an association of house prices in an area or neighborhood with the influx of new residents? That is, if there are empty spaces in a neighborhood, or ...
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43 views

Why has gold dropped during the same week as Deutches Bank faces great difficulties

I chose the phrasing "great difficulties" to be polite. The "capital release unit" seems to be a bit of a desperate action from the bank, coupled with further complications involving bad press made ...
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4answers
62 views

Bandwidth, latency and price

Can a market be seen as a set of nodes (market actors) connected by edges with bandwidth and latency characteristics? Are these terms used in economics? If so would an import tariff affect bandwidth ...
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126 views

bonding curves and the market

This question is related to economics on the blockchain. Bonding curves are becoming popular; however, it is a bit concerning that the price on an asset is predetermined by a mathematical function. ...
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45 views

Is it possible to sell a rival and non-excludable product?

The context pertaining to which I have asked this question is same as that of the question linked below Rival and non excludable products In the linked question, a few examples of rival and non-...
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How to research “the role of market analysis in small enterprises efficiency/ performance/ profitability in Afghanistan)

I’m a BBA student from Afghanistan and looking for a dissertation topic. My interest area is analyzing and managing businesses, specially small enterprises. This is an old topic to research I know, ...
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How Do I Numerically Represent Liquidity in the General Monetary Model Md = L(i) x PY

Please help me it's driving me mad yet I know it's so simple. I understand the qualitative aspects - how liquidity is simply a portion of our nominal income that we demand for transactions. And how ...
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66 views

What mathematical structure or formalism can be used for modelling strategic investment decisions of agents in the context of competition?

I'm trying to analyze the decisions of agents in investing scarce resource like time and money into developing their product/service/offering in the presence of competition. I need to know what kind ...
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Wealth Distribution and market incompletness

From the literature of incomplete market (e.g. Aiyagary 1993,1994), it seems to be the case that: With complete markets, the capital distribution in the final steady state depends on the distribution ...
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1answer
15 views

Effect of prediction of later catastrophe

Say a catastrophic worldwide event is predicted likely for exactly 100 years from now, but it will not affect anyone til then. Say a large meteor hit. Would markets budge much? My only relevant ...
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How can the government or the institution classify the frim the price-fixing cartel with price-leadership model?

It really disturbs me that the dominance firm and the cartel quite hold a similar pattern of setting the price. ( in case of the cartel is not a monopoly ) When the government or the institution of ...
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Understanding agents selecting among markets

Let's say an entrepreneur can choose between starting a business in a competitive market with zero economic profit, and starting a business in a market that is not perfectly competitive with positive ...
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Selling price of a widget at competitive equilibrium

Let's suppose that it costs producers a minimum of y dollars to produce a widget (it may actually cost more, depending on the producer, but that is the bare minimum). In a competitive equilibrium, ...
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1answer
41 views

Supermarkets industry market structure

If the industry is dominated by a few major large retailers like Walmart and target with thousands of many other small supermarkets around the country, what is the market structure of the industry? is ...
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2answers
108 views

What are the assumptions behind calculating the market equilibrium from supply and demand curves?

Imagine that there are 5 buyers (B1,...,B5) with maximum willingness to pay as follows: B1 = $5 B2 = $4 B3 = $3 B4 = $2 B5 = $1 Imagine that there are 5 sellers (...
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What is the simplest yet most effective way of describing the incentives for specialization mathematically?

I'm trying to create a NETLOGO model of firms in a market and their decisions on whether to specialize or not. I find that it is a lot more difficult than I thought it would be. For example, trying to ...
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Walras's law in a Fisher market

Walras's law is stated for an exchange market: each agent comes to the market with a certain endowment of each commodity, a price-vector is determined, and the demand of each agent is the best bundle ...
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Why is the price of books set by the manufacturer rather than the distributor?

For almost all manufactured goods which the manufacturer doesn't sell directly to the end consumer, the manufacturer sells to a distributor, and the distributor is then free to resell the good to the ...
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What happens in a bartering system when a resource is plentiful but cannot be paid for?

Here is a hypothetical scenario: Let's say there are two tribes which barter goods. Tribe A has an fairly large amount of fish, but no bricks. Tribe B has an extreme abundance of bricks, but no ...
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What is the name for a market where everyone is basically selling the same thing?

Consider the market for retail banking. Everyone is governed by the same interest rates, and it's not like one bank can offer something remarkably different from the others. Retail pharmacies are the ...
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What does it mean when someone says “2 trillion wiped off markets”?

After a major global event, sometimes the markets move and headlines are written saying something like “2 trillion wiped off markets”. But what does this actually mean? Does it mean the aggregate ...
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1answer
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Market Theory: Upper limit of capital/weatlth accumulation?

Politicians often bicker about how big the government should be when it comes to redistributing wealth. Question: My question is simple; would a laissez-faire approach to the market always result in ...
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Is there an economic theory that explains what happens when a market is saturated with a precious resource?

The theoretical situation is this. What if a record breaking amount of platinum were discovered. What would happen to the economies that use, store, and/or produce platinum? I would like to apply ...
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Auction mechanism with no trusted third-party

I have been using a double-auction mechanism to solve a two-sided market where multiple agents are competing to supply/use slices of a shared resource. The owner of the resource is a trustable third-...
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Two-sided market and bargaining game

I am solving a bargaining problem in which I have two players $player_1 $ and $ player_2 $. Both of them have a service (represented as $ z_1 ,z_2 $) that they can provide . Moreover they will ...
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Are stock exchanges market makers?

Are stock exchanges like NASDAQ and NYSE market makers? In other words, are they providing liquidity by pairing individual buyers and sellers with each other in real-time? Or does it work differently?
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Are corporations free market on the outside and communist dictatorships on the inside?

See why we hate working for big companies What do you think of the proposition that Modern capitalism raises the flag of the free market while pitting centrally planned organisations against each ...
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Predicting GDP contribution from market share

I want to find the GDP share of several companies, but I have their market share. Now we know that these two are not equal, and the market share to GDP ratio represents general overvaluation or ...
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1answer
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Stock vs flow variables

How could I decide from a variable exactly, that is stock or flow type? Variables, which are measured at a point of time are ...
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1answer
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Why do graphic card prices rise due to bitcoin miners?

I thought it would mean more sales thus more production and more profit, so why does nvidia and amd simply dont ramp up production if the trend has been now quite a long one? And as far as I can see ...
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309 views

What's the Difference Between Being Pro-business and Being Pro-market?

In a recent interview I watched a economist say something along the lines of: "There is a distinction between being pro-business and being pro-market. There should be rules in place so that ...
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2answers
192 views

It's unclear how market equilibrium is reached in case of overproduction

Let's assume that there is disequilibrium, namely that $P=P_2$, thus $Q_s > Q_d$. In other words, there is overproduction. This is perfectly competitive market, so competition between producers ...
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In what contexts are stable markets sub-optimal?

My understanding is that market stability is a good thing, because it allows more reliable estimates of profits (revenues minus expenses) and expected return-on-investment related to new investments. ...
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Resources for periodical economics feed [duplicate]

I'm learning economics and I want to read/hear the world through the lenses of any economist. What are the best periodical economics news feeds? It could Magazines such as theeconomist.com Podcast ...
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Looking for a term that explains market participants that lie about their participation to gain access to said market

I'm Looking for a term that explains the behavior of a market participants that will lie or exaggerate how much or what they offer in order to gain access to a market that would otherwise be ...
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1answer
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Vegetarians vs shoppers of humane meat/eggs/dairy - Who has the biggest impact on the factory farming meat industry?

I apologize for not being able to word this in a non subject specific way. So, for people who don't support widespread factory farming practices, there are people that abstain from meat completely, ...
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2answers
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Reductionism, value and market economics

If I'm not mistaken, the economic value provided by a business entity to the community is just one kind of value. We tend to put numbers to things such as stock price, revenue, profits and so on. ...
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Why do co-ops dominate in certain markets rather than more-conventional enterprises?

Why do co-ops dominate in certain markets rather than more-conventional enterprises? For example, the US dairy processing market seems to be dominated co-ops like Land'O Lakes and Dairy Farmers of ...
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325 views

What is the new price after an import quota?

For a small domestic market that can buy completely price elastic imports from the world, the price of the good will be at (P world). However, when there is an import quota of quantity (Q3 - Q2), why ...
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1answer
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Why is ATC tangent to Demand in a Monopolistic or Mopolistically Competitive Firm Making Zero Profit?

I understand that the Average Total Cost is equivalent to demand in a zero profiting monopoly or monopolistically competitive firm in order for there to be zero profits (when ATC = P at a given ...
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5answers
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Why isn't the cost of shoes affected by their size?

I have noticed that many shoe selling shops I have visited have the same price tag regardless of the shoe size. Intuitively I'd think the bigger the shoe the more material and consequently capital ...
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3answers
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Why is the Market-Clearing Price also an Equilibrium Price?

When the price is such that supply equals demand for e.g. bicycles, everybody who wants to buy a bike at that price gets one, and every bike gets sold. Everybody goes home happy and the marketplace ...
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2answers
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What is the name given to an exporting-only economy?

In international trading there can be an economy that only exports, but restrict the import to minimum or at all. I cannot recall what the name given to this type of economy.
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Episodes of Housing Crashes and Never Recovering

Looking at many housing markets in major cities around the world today it looks like most (London, New York, Sydney, Beijing, Toronto,...) have become totally detached from the earnings of the local ...
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1answer
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What are some applications of Akerlof's 'lemons' in goods and services markets?

How can the idea of Akerlof's 'lemons' be applied to goods and services markets (that doesn't include second-hand cars)?
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If Germany is the largest exporter, why do Chinese products pervade the the US market?

Despite Germany being the third larger exporter in the world, I have not once seen German products on online retail sites such as Amazon.com, NewEgg, BestBuy, or any retailer in the US really. Why is ...
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Are market structures on a spectrum?

So I understand that each market structure has their own characteristics, and that for instance Perfect Competition involves high competition, and I believe Monopolistic competition slightly less so, ...
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140 views

When to prefer maximisation of surplus and when instead to prefer minimising differences in price and q to find market equilibrium?

Two alternative approaches to compute a market equilibrium (in static analysis) are either to minimize the differences (either using abs() or a quadratic diff) between supply-demand quantities and ...
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160 views

Difference between LMSR and Liquidity-Sensitive LMSR

What is the difference between the LMSR (logarithmic market scoring rule) and the Liquidity-Sensitive LMSR (LS-LMSR) and what would cause prediction markets like Augur to focus on the later model?