Knowledge that Transforms

Usually, the information a buyer requires in order to obtain the lowest price must be produced at a cost depending on the efficiency with which the buyers gather information. Thus, a suitable price dispersion enables a monopolist to split up the market to permit a more profitable price discrimination. In this paper, necessary and sufficient conditions for the existence of a non-trivial profit maximizing price dispersion are considered. Furthermore, the relationship between statistical properties of the set of consumers' characteristics and this existence problem are studied.

Two basic approaches to using dynamic econometric models to formulate macroeconomic policy are generally in use. These are: invertible transfer function methodology and optimal control methodology. In this paper a technique for determining dynamic growth paths is presented. The result of the application of this technique is the synthesis of the two approaches into a single approach yielding a policy with more desirable characteristics than was previously possible. An example of the use of this synthesis technique using Pindyck's model is presented.

Can we state that at a given Benassy Fixprice Allocation z " there is, say, excess effective demand for a commodity? It turns out that in productive economies there may be ambiguities in the sign of excess effective demand: different effective demand vectors with different signs. may be compatible with z*. We prove: (a) no ambiguity exists if intermediate goods are ruled out and if all firms in the long side of a market perceive binding constraints; (b) in any case one can always select a vector of effective demands yielding minimal sets of buyer's and seller's markets. 1.

This paper considers whether the dynamic stability of the steady-state growth path, deduced in various models under the assumption of perfect foresight, can be sustained if foresight is imperfect. Using a dynamic Leontief system as the framework and measuring the degrees of goodness of foresight by the length of the forecast horizon, the paper derives an affirmative answer. The result can also be interpreted as asserting that the Neumann ray serves as a turnpike for a rolling plan of a long planning horizon.

The dependence of national output variances on the structural and stochastic features of world markets and on the global exchange arrangement is depicted in a multi-country model of income and exchange rate determination. The set of Pareto optimal exchange arrangements is displayed. Examples are presented to illustrate the empirical determinants of an optimal arrangement, the situations under which currency blocs are Pareto optimal, and the distributional conflicts which often arise in an asymmetric world.

A Walrasian equilibrium is catastrophic from the non-Walrasian viewpoint if some small deviation from the Walrasian prices produces only non-Walrasian equilibrium allocations a long way from the Walrasian allocation. A precise account of this phenomenon is given for a class of three good, single household private ownership production economies.

Journal Article A Note on Imperfect Information and Optimal Pollution Control Get access Rafael Repullo Rafael Repullo London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 49, Issue 3, July 1982, Pages 483–484, https://doi.org/10.2307/2297372 Published: 01 July 1982

In a recent article, Aneuryn-Evans and Deaton propose asymptotic formulae for analysing Monte Carlo studies of the Cox statistics for testing non-nested hypotheses. This note shows the invalidity of those formulae by demonstrating that, in general, the Cox statistics do not have a singular joint asymptotic distribution.

This paper analyses the relationship between the efficient sets of investment portfolios and the investment holding period. Investors are allowed to hold risky assets as well as the riskless asset. The main result is that dominance in each period implies dominance in the multiperiod case. This finding holds with respect to first, second and third degree stochastic dominance. The riskless interest rate may vary from one period to another without changing the results of this paper.

Journal Article Defensive Foresight Rather than Minimax: A Comment on Eaton and Lipsey's Model of Spatial Competition Get access Rögnvaldur Hannesson Rögnvaldur Hannesson University of Bergen Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 49, Issue 4, October 1982, Pages 653–657, https://doi.org/10.2307/2297294 Published: 01 October 1982 Article history Received: 01 September 1981 Accepted: 01 May 1982 Published: 01 October 1982