Search results
Results from the WOW.Com Content Network
Price theory was a significant aspect of his legacy as a teacher, and he taught the subject from 1946 to 1964 and again from 1972 to 1976. Notable economists who took Friedman's price theory course include James M. Buchanan , Gary Becker , and Robert Lucas Jr. , all of whom later became Nobel laureates.
Economic noise, or simply noise, describes a theory of pricing developed by Fischer Black. Black describes noise as the opposite of information: hype, inaccurate ideas, and inaccurate data. His theory states that noise is everywhere in the economy and we can rarely tell the difference between it and information. Noise has two broad implications.
Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathers" , also known as asymmetric cost pass-through) refers to pricing phenomenon occurring when downstream prices react in a different manner to upstream price changes, depending on the characteristics of upstream prices or changes in those prices.
In a discrete (i.e. finite state) market, the following hold: [2] The First Fundamental Theorem of Asset Pricing: A discrete market on a discrete probability space (,,) is arbitrage-free if, and only if, there exists at least one risk neutral probability measure that is equivalent to the original probability measure, P.
The Theory of Price is a book written by George Stigler. The book was first published in 1946, as a revision and expansion of The Theory of Competitive Price (1942), and has since been revised and reprinted several times (1942, 1946, 1952, 1966, and 1987). The book covers a range of topics related to microeconomics.
An Edgeworth price cycle is cyclical pattern in prices characterized by an initial jump, which is then followed by a slower decline back towards the initial level. The term was introduced by Maskin and Tirole (1988) [1] in a theoretical setting featuring two firms bidding sequentially and where the winner captures the full market.
This statement is precisely correct; once there were beliefs, now there was knowledge. The Arrow-Debreu model, as communicated in the Theory of Value, changed basic thinking and quickly became the standard model of price theory. It is the "benchmark” model in Finance, International Trade, Public Finance, Transportation, and even macroeconomics...
The personalized price-vector p i can be interpreted as the Lindahl tax on agent i. Note the difference from a competitive equilibrium in a market of private goods (Fisher market): In a Fisher market equilibrium, there is a single price-vector for all agents, but each agent has a different bundle