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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How cheap is Gold?
It's possible to measure how cheap stocks are, because we can compare asset price to its output.
$$Rate = {Revenue \space \over Capitalisation}$$
And then at any given moment we know how cheap ...
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2answers
29 views
Why will inflation raise sellers' purchasing power?
According to my textbook, in the chapter on inflation,
"When a price rises, buyers of that good must pay more, but sellers get more revenue when they sell it. The loss in buyers' purchasing power is ...
0
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1answer
32 views
Does the case of strategic complements always result in a situation where the Stackelberg leader is worse off?
For example, in the case of Bertrand competition, is the Stackelberg leader worse off relative to the follower? If so, why? Is this because the first mover can always undercut until marginal cost is ...
2
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1answer
65 views
Competitive vs complete and non-competitive vs incomplete marekts
The very insightful questions that arise, when someone studies micro foundation are the following: What is the difference between competitive and complete marekts? When we refer to the first is it ...
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0answers
20 views
A problem: allocation of apartments
Setup: Trine owns an apartment in Copenhagen. She is willing to rent
it out at any positive price. Peter and Simon
lives together and are both students. They will like to rent the apartment for less ...
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0answers
14 views
Market structure determination
I will be conducting a research about the market structure of an outdoor farmers market. I wanted to know what kind of survey questions could help me for example to determine the PES of the market or ...
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votes
1answer
31 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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0answers
9 views
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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1answer
45 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
63 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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1answer
131 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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1answer
47 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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4 views
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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0answers
8 views
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 ...
0
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1answer
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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0answers
18 views
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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vote
1answer
17 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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0answers
17 views
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 ...
3
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1answer
66 views
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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1answer
45 views
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
43 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 ...
2
votes
2answers
148 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 (...
0
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0answers
28 views
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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0answers
45 views
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 ...
0
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1answer
51 views
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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2answers
78 views
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 ...
0
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1answer
61 views
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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1answer
31 views
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
60 views
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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1answer
71 views
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 ...
5
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0answers
83 views
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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vote
0answers
55 views
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 ...
5
votes
1answer
50 views
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 ...
0
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1answer
18 views
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 ...
2
votes
1answer
1k views
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
31 views
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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vote
1answer
416 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 ...
2
votes
2answers
197 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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0answers
15 views
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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0answers
13 views
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 ...
0
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3answers
111 views
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
36 views
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
74 views
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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0answers
26 views
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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vote
0answers
343 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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vote
1answer
2k views
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
576 views
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
5k views
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 ...
0
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2answers
74 views
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.
