Price adjustment in an economy with Markov disturbance (Q1060671)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Price adjustment in an economy with Markov disturbance |
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Price adjustment in an economy with Markov disturbance (English)
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1985
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Suppose prices p are adjusted in accordance with excess demand z by \(\Delta p=k_ 1z\). 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.
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tatonnement price
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Markov disturbance
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price adjustment
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