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.
113
questions
0
votes
1answer
22 views
How to graph a monopoly that does not exhibit the properties of a contestable market?
This question is not a homework question. I am taking a course in industrial organization, and the textbook/professor have given an illustration of a monopoly that is a contestable market. However, I ...
0
votes
1answer
35 views
A maximization problem with multiple goods and integrated markets
Update:
I will try to clarify the question: Let us say that the total harvest of the fish population at time t is $H_t$. Every harvest produce three types of fish: salmon ($f_1$), which is valuable ...
-1
votes
0answers
36 views
Books that examine efficient markets from first principles?
I hope to deeply investigate the philosophical underpinnings of efficient markets and answer questions such as: 1) under what conditions do free markets exist, 2) when do markets deviate from ...
1
vote
2answers
30 views
Remove Linear Good From Quasi-linear Utility Function
Given a quasi-linear utility function: $u(x_1, x_2) = f(x_1) + \beta x_2$, $\beta > 0 $
What would happen if good 2 ($x_2$) is removed from the market? Would the new utility function be: $u(x_1) =...
0
votes
1answer
18 views
Measurement for the downstream use of a commodity
I am looking to find a measurement that would tell me the size of the market of the downstream use of some particular commodity. For example, salt or wheat would be used by many companies downstream. ...
1
vote
0answers
16 views
Lerner Index Interpretation?
How do you interpret the Lerner Index?
I ask because at Uni. we have been told that, for monopoly, when the producer max. his profit, he sets the price such as the demand is elastic and the lerner ...
0
votes
1answer
16 views
House allocation: Data notation correction with Top Trading Cycles (TTC) example
I am trying to understand TTC algorithm for house allocation. I have got a small problem. I am trying to understand the following example:
IE=[i1 , i2 , i3 , i4], IN=[i5], Ho=[h1 , h2 , h3 , h4], ...
0
votes
1answer
27 views
Why is the equilibrium network size can be less than the socially optimal size in networks w/ positive externalities for single system?
For Context, I am reading http://web.mit.edu/rpindyck/www/Courses/NetEx19.pdf. The chapter talks about network externalities in single system like fax machine, email, vaccinations for measles. ...
0
votes
1answer
31 views
Does price cap in emergency situation (COVID-19) reduce the availability of a good? Does unregulated market increase it instead?
I was discussing with one of my friend about Italy price cap on surgical mask to control speculation. He says price cap does not allow industries to invest more to increase the production that would ...
0
votes
0answers
11 views
Can we consider a supermarket as a market?
Good morning,
I have been reading a book in which the author said that "the supermarket is not a market, because despit the large number of buyers, the seller is unique".
So, I've been wondering ...
-1
votes
1answer
75 views
What is the latest thinking on the economic calculation problem? [closed]
Eric Posner and Glen Weyl write in the epilogue of Radical Markets (2018) that they “remain confident that for at least a few generations markets – Radical Markets, that is – will remain the best ...
4
votes
1answer
218 views
Properties of Financial Markets in Real Life
When studying financial economics, three concepts appear everywhere
Equilibria (investors maximise utility, markets clear and aggregated demand equals aggregated supply)
Completeness (there are ...
0
votes
0answers
14 views
When has the US imposed large price controls in markets?
During the second world war, the US imposed widespread price controls on various markets. Since then, has the US government employed these sorts of measures (price floors, ceilings, and so on), on a ...
0
votes
1answer
136 views
Why didn't other oil pricing benchmarks such as Brent go negative?
This question is asking why the oil (in this case, WTI) price is negative.
While I think I have broadly understood why WTI collapsed, I don't really understand why other oil pricing benchmarks didn'...
1
vote
1answer
33 views
What value do virtual traders of commodity add to the market?
Many if not most companies trading in commodities are only trading them on paper. They will not use the commodity they are buying and can not take deliver of the physically commodity.
What value do ...
0
votes
1answer
24 views
CDO and Nonpositive Equity Questions
I have two questions about statements made in this video: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/bank-bailout/v/bailout-2-book-value
At 6:25, the video ...
0
votes
0answers
20 views
Are final goods commodities?
I've been reading about final goods and commodities and some links
https://en.wikipedia.org/wiki/Final_good
https://marketbusinessnews.com/financial-glossary/final-good/
mention that final goods ...
2
votes
1answer
46 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
votes
1answer
40 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
votes
1answer
194 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 ...
0
votes
0answers
22 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 ...
1
vote
0answers
19 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 ...
-1
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?
1
vote
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 ...
-1
votes
1answer
46 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 ...
0
votes
4answers
65 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 ...
1
vote
1answer
139 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. ...
1
vote
1answer
58 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-...
0
votes
1answer
70 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 ...
1
vote
0answers
19 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 ...
1
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 ...
3
votes
1answer
72 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 ...
0
votes
1answer
46 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, ...
1
vote
1answer
46 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
177 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 (...
1
vote
0answers
52 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
votes
1answer
52 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 ...
1
vote
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
votes
1answer
74 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 ...
0
votes
1answer
38 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 ...
0
votes
1answer
66 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 ...
0
votes
1answer
72 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
votes
0answers
86 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-...
1
vote
0answers
57 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
55 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?
1
vote
0answers
19 views
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
votes
1answer
19 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
2k 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 ...
0
votes
1answer
32 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 ...
1
vote
1answer
969 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 ...
