Equilibrium in a Market Game
โ Scribed by Yan-An Hwang; Mau-Hsiang Shih
- Publisher
- Springer
- Year
- 2006
- Tongue
- English
- Weight
- 112 KB
- Volume
- 31
- Category
- Article
- ISSN
- 0938-2259
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
Standard finance theory generally assumes homogeneous agents relatively to their preferences, heuristics and investment strategies. We propose to study, in an agent-based simulation, the emergence of equilibrium under various heterogeneous conditions. Market interaction is stylized with the Minority
## Abstract This article examines the effect of disappointment aversion on the equilibrium in a commodity futures market. Consider a commodity market with a producer and a speculator. We show that the equilibrium price is positively related to either agent's risk or disappointment aversion, and to