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Price expectations and cobwebs under uncertainty
Journal article   Peer reviewed

Price expectations and cobwebs under uncertainty

SD Flaam and Yuriy Kaniovskyi
Annals of Operations Research, Vol.114(1-4), pp.167-181
114
2002
Handle:
https://hdl.handle.net/10863/227

Abstract

There is given a market for several perishable goods, supplied under technological randomness and price uncertainty. We study whether and how producers eventually may learn rational price expectations. The model is of cobweb type. Its dynamics fit standard forms of stochastic approximation with either variable or constant stepsizes. Relying upon quite weak and natural assumptions we prove new convergence results.
url
https://link.springer.com/article/10.1023/A%3A1021066304288View

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