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Price adjustment in an economy with Markov disturbance

Authors :
Fred W. Roush
Ki Hang Kim
Source :
Mathematical Social Sciences. 10:263-267
Publication Year :
1985
Publisher :
Elsevier BV, 1985.

Abstract

Suppose prices p are adjusted in accordance with excess demand z by Δp = k 1 z . We determine the optimal constant k 1 given that demand is the sum of a linear function of price and a Markov disturbance. Supply is fixed.

Details

ISSN :
01654896
Volume :
10
Database :
OpenAIRE
Journal :
Mathematical Social Sciences
Accession number :
edsair.doi...........432fde5fbed561585ed252535b9fb8ea
Full Text :
https://doi.org/10.1016/0165-4896(85)90046-0