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Sure. In the two type case there is an alternate solution that is frequently used. If $a \neq c$ and $b \neq d$, that is the types are really different in both attributes, then you can define a ...

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What you write is true in a monopoly situation, but not when there are multiple firms on the supply side. However, when equilibrium is discussed in this context people usually mean competitive ...

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The independence of the central bank means that the bank is independent of the government. A mandate of the central bank is to ensure price stability. However any excess cash the bank prints is the ...

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Varian's Intermediate Microeconomics covers a concept called the bliss point. If the consumed amount of a certain good is under the quantity specified by the bliss point, then the consumer would ...

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The textbook probably means growth rate and not absolute growth. Given your assumptions $$\frac{\frac{d}{dt}Div_t}{Div_t}= \frac{\frac{d}{dt}\text{Earnings}_t}{\text{Earnings}_t}$$ does hold.

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Consider the following two examples: There is a consumer who is willing to pay 50 dollars for a good. (Reservation price is 50.) There is a seller who is willing to sell for 30 dollars. (Marginal ...

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How about Walras's law? Walras's law is a principle in general equilibrium theory asserting that budget constraints imply that the values of excess demand (or, conversely, excess market supplies) ...

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What about \begin{array}{|c|c|c|} \hline &C&R\\\hline M&0,0&0,0\\\hline D&0,0&1,1\\\hline \end{array} ? This game has two pure equilibria, $(M,C)$ and $(D,R)$ but no mixed ...

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Your statement does not seem to be true for normal goods either. A counterexample: $$U(x_1,x_2) = (x_1x_2)^{\frac{2}{3}}$$ By the Cobb-Douglas property the optimum bundle given $w,p$ is (x_1,x_2) ... View answer 1 answers 3 votes 114 views Accepted answer 4 votes You could add up the equations \begin{align} \delta(1-\underline{S})S_j=e_i(S_i+S_j)^2 \\ \delta(1-\underline{S})S_i=e_j(S_i+S_j)^2 \end{align} to get \begin{align} \delta(1-\underline{S})(S_i+S_j)=(... View answer 3 answers 7 votes 7k views Accepted answer 4 votes In general: If you draw the numbers of the payoff matrix from continuous i.i.distributions then with probability 1 the game will have an odd number of equilibrium points. (Meaning the sum total of ... View answer 2 answers 3 votes 2k views 4 votes The definition "Strategy is one of the possible actions of a player" is very poorly phrased. As you note there is an important distinction between action sets and strategy sets in some games, e.g. ... View answer 1 answers 0 votes 54 views 4 votes The Royal Swedish Academy of Sciences has decided to award the 1976 Prize in Economic Sciences in Memory of Alfred Nobel to Professor Milton Friedman, University of Chicago, Illinois, USA, for his ... View answer 1 answers 5 votes 15k views Accepted answer 4 votes Suppose that there is no 45 percent tariff and the market is in some kind of equilibrium. That is the demand for yuans equals the supply of yuans at the current exchange rate. Now assume Trump does ... View answer 3 answers 0 votes 168 views 4 votes Sure, because dollars are nominal goods. Perhaps a ticket to Star Wars Episode CXVIII will cost one trillion dollars. If you meant today, without huge changes in the price level: Yes, there is way ... View answer 2 answers 1 votes 5k views 4 votes Have you tried Google? By copying a part of your question into Google I was able to find several examples. The best one may be this site which lists 20 positively and negatively correlated stocks for ... View answer 3 answers 3 votes 2k views Accepted answer 4 votes The 'long run' assumption is not about whether the firms already on the market are price takers (perfect competition) or oligopolists but whether entry to the market is free. If entry to the market is ... View answer 1 answers 2 votes 320 views Accepted answer 4 votes Questions with numbers are usually not as good as questions without numbers. If you had written down the formula for CV and EV you would probably have noticed that your premise is false. CV and EV ... View answer 1 answers 3 votes 2k views Accepted answer 4 votes It depends on what you mean by generically. The Prisoner's Dilemma has exactly one equilibrium. If you generate the payoffs in your 2 \times 2 game by drawing payoffs from continuous i.i.d.'s then ... View answer 1 answers 4 votes 526 views Accepted answer 4 votes a) Your calculations are correct, but in order for consumption to be positive, so for c_t=\bigg(\frac{R}{(\beta R)^{\frac{1}{\gamma}}}-1\bigg)k_t > 0, $$you will need to additional conditions. ... View answer 3 answers 5 votes 673 views Accepted answer 4 votes Here$$\not\exists\;x_i^\star\; s.t.\; u_i(\alpha x_i)\geq u_i(\alpha x_i^\star)\;\forall i\;\text{and}\;u_i((1-\alpha)\hat{x}_i)\geq u_i((1-\alpha)x_i^\star)\implies\not\exists\;x_i^\star\;s.t.\...

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Ideally the points $(x_1,y_1)$ and $(x_2,y_2)$ are very close. The assumption is that that they are so close that the elasticity of the demand function on the curve between them is nearly constant. ...
The utility function $U'$ is a monotonic transformation of $U$ if there is a strictly monotonically increasing function $f$ for which $$\forall x,y: \ f(U(x,y)) = U'(x,y)$$ Larger values of $U(x,y)... View answer 1 answers 3 votes 141 views Accepted answer 4 votes This does not directly answer your question, but I will try to explain why I don't think that such well known papers exist. If submitted I don't think that such a paper would be accepted by the top ... View answer 3 answers 1 votes 2k views 4 votes The statement is not true. Let$x_A + x_B = 1$,$y_A + y_B = 1$. Let$U_A(x_A,y_A) = x_A + \ln(y_A)$,$U_B(x_B,y_B) = x_B + \ln(y_B + 1)$.$f \neq g$are both strictly increasing & concave. For ... View answer 1 answers 3 votes 215 views Accepted answer 4 votes There is no conflict. The strategy is a function which maps decision points to actions, that is it tells the player in each decision point (to be precise, in each information set) what she should do. ... View answer 4 answers 16 votes 6k views 4 votes I think the answer of @EnergyNumbers covers most of the important points but I would like to emphasize something else. When setting up a model you should not give the same weights to data from 500 ... View answer 1 answers 6 votes 727 views Accepted answer 4 votes First off it seems to me you are proceeding in a manner more complicated than necessary. (Perhaps this is intentional because you wish to face a harder exercise.) Since it is given that$v(x)$... View answer 2 answers 3 votes 1k views Accepted answer 4 votes I agree with @Alecos Papadopoulos that this is probably a marketing/product differentiation trick. You attract a specific type of consumers with a specific mindset. Another theoretical explanation ... View answer 1 answers 1 votes 44 views 4 votes To continue your example: Resources (including labor) cost$x$, product sells for 4$x$. The fat cat business owner makes 3$x\$. What does he do with it? If he spends it, for example plays golf or gets ...