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.

Filter by
Sorted by
Tagged with
0
votes
1answer
1k views

What is the wealth of a company?

I would like to better understand what is the wealth of a company and what is made of. Is the wealth of a company similar to GDP of country, like a "gross company product" ? As example: can we say ...
4
votes
2answers
11k views

How can the abuses of monopoly power lead to market failure?

So I know that the abuses of monopoly power can cause market failure, but I don't know why that is. I am guessing that because monopoly's face a lack of competition, they have no incentive to improve ...
2
votes
2answers
522 views

Why currency purchasing power is linked to confidence in central banks

From the New Statesman, http://www.newstatesman.com/politics/economy/2016/02/coming-storm, "Ever since the collapse of the Bretton Woods system of pegged exchange rates in 1971, the sole guarantee ...
2
votes
1answer
586 views

Under what conditions does market failure occur?

Edit: Is it possible to broadly categorize the ways in which market failures occur into relatively few categories? If so, what are they?
1
vote
0answers
57 views

World company database?

I need to find the list of companies with their respective market caps and their sectors of activities. For now I have found these two links: • https://goo.gl/E8WJzu • http://goo.gl/vuHDuF But I ...
2
votes
2answers
47 views

We see stocks outperforming things like bonds in the long run (past 100 years), but could this be an artifact of that particular 100 year timeline?

When looking at historical return patterns for investments, one can clearly see the stellar performance of equities over the long haul. That being said, we know that we can center in on certain 20-25 ...
3
votes
0answers
200 views

Fundamental Theorem of Asset Pricing (Linear Algebra)

I saw this question in a textbook that I was recently reading and don't really know how to aprpoach this problem. Let $H$ be a finite dimensional vector space with inner product ($\cdotp$, $\cdotp$)....
1
vote
0answers
57 views

How to model optimal market pricing?

I am interested in understanding how to mathematically model market interaction to optimize pricing strategy. In my model I have two kinds of knowledge: the market's order book and the price/volume ...
1
vote
2answers
4k views

What is the difference between 'actual' and 'potential' interaction between buyers and sellers?

In the book "Microeconomics" by Pyndyck and others, the author(s) define a 'market' as a collection of buyers and sellers, who by the actual or potential interaction with each other determine the ...
7
votes
4answers
3k views

Is market failure constant? What properly defines it?

My textbook defines market failure as when "the production or consumption of a good or service causes additional positive or negative externalities on a third party not involved in the economic ...
1
vote
1answer
56 views

What are the implication of state-run oil production vs. private production from leases?

I'm not any kind of expert in this area, so please be gentle. It seems that we speak of oil (and other natural resources) as though control of output and revenue from extraction adheres to the ...
3
votes
3answers
1k views

Why does Venezuela have such a high Big Mac Index?

Venezuela is ranked #2 in the 2014 Big Mac Index at \$7.15 per Big Mac. You can see the graph here. However, Venezuela is not a very rich country, having a gross domestic product of \$11,789 per ...
4
votes
1answer
40 views

Prediction market based on LMSR: Sell, or buy other side?

Consider a prediction market with two outcomes (Yes and No) and a scoring rule based on Hansons’s LMSR, i.e. ln(ea+eb), where a and b are the number of Yes resp. No shares sold. Assume that I have ...
2
votes
0answers
89 views

Did I do something wrong in calculating the market equilibrium?

Sorry for asking such a silly question, but something seems odd about my answer to this question: Suppose that two consumers, Jeff and Walt, are the only consumers in the market for carrots. Jeff’...
1
vote
0answers
27 views

References for “Capturing value”

I have seen in several places references to "capturing value". For example: Value Creation vs. Value Capture Work on Stuff that Matters: First Principles I think that such considerations are ...
4
votes
2answers
1k views

What would happen if stock markets were open 24 hours?

Suppose you are a broker or a trader, and the stock markets will be open 24 hours a day. What would be the implication for you as a broker in this scenario? I mean: How will your strategies change? ...
2
votes
1answer
48 views

Access to the markets for a country

What does it mean for a country to have access to the markets. E.g: There is an ongoing discussion when Greece will follow a prosperity path in order to enter again the "markets".
1
vote
0answers
68 views

Competition vs. cooperation [closed]

Why has competition evolved to be the leading principle of market based economies? Can this sustain in the long run? I am thinking about cooperation as a better principle of doing things in the long ...
2
votes
0answers
32 views

Understanding Options Quotes

Below is a picture of today's Rough Rice Options Quote. I would like to understand how to interpret the information in the table below. Firstly, with regards to the future contract we see that it ...
2
votes
0answers
81 views

What topics are important to analyse a financial product? [closed]

When reading analysis papers of financial product, derivative or stock, tangible or not, I noticed that a lot of those papers seem to have similar structures. This got me to the question if there ...
1
vote
0answers
45 views

Analysis of exogenous shocks on equities

Real Life Problem This one is a tough one and some crowd sourcing seems like a good way to get some feedback. I am trying to determine the effect of Non-Farm Payroll surprises on a subsector of the ...
1
vote
1answer
133 views

Will the goods market be in equilbrium along the AD curve?

This is a question which was asked in the entrance to Jawaharlal Nehru University's (New Delhi) entrance for their post-grad program specializing in International Economics in 2014. Which of the ...
7
votes
1answer
1k views

Benefits of a cartel among firms

Suppose I have $n>2$ firms selling differentiated products. These firms form a cartel for the price. The cartel has size $n_c$. Let $\pi_{i,m}$ be the payoff of a firm $i$ outside the cartel and $\...
2
votes
0answers
93 views

residential property shares trading (similar to REIT)

This year in the UK a residential property crowdfunding platform propertypartner.co went live and I would like to understand it from economic point of view. The idea is that a flat/house is purchased ...
2
votes
0answers
54 views

Capital asset pricing model (CAPM) applied to countries

I'm struggling on trying to find a beta for an equially wighted profolio for three countries (A, B,C). All the data I'm given are montlhy retunrs of each countrys ...
4
votes
1answer
976 views

Why is food less expensive in India than the United States?

India has 4x the population, less land, and far worse technology and infrastructure than the United States. Shouldn't food cost in the US be less expensive? I've never been to India, but it seems like ...
2
votes
0answers
70 views

Decreasing consumption prices and increasing housing prices

It's election time in my country. The government boasts a decrease of 5% in consumption prices thanks to removing regulations, while the opposition blames the government for an increase of 5% in ...
1
vote
0answers
99 views

Economic Model: Incentive Compatible Market Economy that Satisfies Basic Needs

The capitalism system relies on a monetary system for exchange of goods and services. This appears to cause a large number of problems. For example, we shun those that don't have money. Is there an ...
2
votes
1answer
25 views

Setting prices in mobile telephony

Can someone please explain or provide some useful link on factors affecting setting prices of mobile telephony services?
3
votes
0answers
97 views

Europe not self-sufficient in terms of food requirements and consumption?

An acquaintance once told me that Europe is not self-sufficient in terms of food consumption as it does not have enough farmland and farmers to produce enough for all its people, especially in terms ...
1
vote
1answer
86 views

How do I distinguish price-taking in perfect competition from monopsony?

I'm working on a practice problem where I'm giving the following: Suppose a firm is a price-taker and can sell the good it produces at price $p$. There is more to the problem, but it is not ...
2
votes
1answer
670 views

Where can I find statistics for numbers of 16-20 year olds in the world?

Where can I find statistics about how many 16-20 years old people do live in the world? If there is no such statistics, how about people in this age-range in europe+amerika?
-3
votes
1answer
89 views

Is there a “personality test” for societies? [closed]

You may have heard of the Myers Briggs personality profile test. Is there a similar test for societies? The MB has four dimensions Introversion/Extraversion iNtuition/Sensing Feeling/Thinking ...
3
votes
0answers
144 views

With OPEC driving the prices of oil down, can American producers simply store oil produced at higher cost to sell later? [closed]

I have been wondering. With OPEC driving down the price of oil in order to stifle the growth of the American oil industry, what can we do about it? More specifically, why don't these oil producers ...
11
votes
3answers
394 views

Can econometrics test for correlation or causality between prices and corruption?

This week there was news that some prices are rising. I heard that in some countries where corruption is high the prices are also higher. I wonder if there is causaility or just both at same. It would ...
4
votes
1answer
60 views

Is there any historical example that a market is shrinking down after competition?

I was told that the advertising market as a whole shrank after Google became part of the marketing industry. Apparently, the decrease occurred in offline markets as well as online markets. Is this a ...
4
votes
2answers
768 views

What are the most recent devopments with applying fractals to economics?

I was researching fractals for my senior mathematics presentation and discovered that one of the most recent pioneers in that section of the field was able to apply fractal mathematics to the field of ...

1 2
3