Rational expectations with market power - the paradox of the disadvantageous tariff on oil

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University of Warwick. Department of Economics , Coventry
Statementby Eric Maskin and David Bewbery.
SeriesWarwick economic research papers -- no.129
ContributionsBewbery, David.
ID Numbers
Open LibraryOL19961470M

Rational Expectations with Market Power - The Paradox of the Disadvantageous Tariff on Oil The theoretical analysis of exaustible resources has to date largely ignored the "geo-political realities" which preoccupy policy makers and has concentrated on the logically prior problem of analyzing market equilibrium in an autarkic economy.

Rational Expectations with Market Power - The Paradox of the Disadvantageous Tariff on Oil. The theoretical analysis of exaustible resources has to date largely ignored the "geo-political realities" which preoccupy policy makers and has concentrated on the logically prior problem of analyzing market equilibrium in an autarkic economy.

Rational expectations with market power: the paradox of the disadvantageous tariff on oil By Eric Maskin and David Newbery Publisher: Cambridge, Mass.: Dept. of Economics, Massachusetts Institute of TechnologyAuthor: Eric Maskin and David Newbery. If producers have rational expectations and the importer is unable to make a credible commitment regarding future tariffs, market power may be disadvantageous.

This is more likely to occur when the difference between short- and long-run elasticities of supply are by: 9. rational expectations with market power- the paradox of the disadvantageous tariff on oil Economic Research Papers, University of Warwick - Department of Economics Also in The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics () View citations (1).

Rational Expectations with Market Power - The Paradox of the Disadvantageous Tariff on Oil by Maskin, Eric & Newbery, David Hungary: An Economy in Transition by Szekely, Istvan & Newbery, David M.

RATIONAL EXPECTATIONS WITH MARKET POWER- THE PARADOX OF THE DISADVANTAGEOUS TARIFF ON OIL by Maskin, Eric & Newbery, David THE FOLK THEOREM IN REPEATED GAMES WITH DISCOUNTING OR WITH INCOMPLETE INFORMATION by DREW FUDENBERG & ERIC MASKIN.

Maskin, Eric & Newbery, David, "Rational Expectations With Market Power- The Paradox Of The Disadvantageous Tariff On Oil," Economic Research PapersUniversity of Warwick - Department of Economics.

Rational Expectations •The rational expectations theory is often used to explain expected rates of inflation. For example, if inflation rates within an economy were higher than expected in the past, people take that into account along with other indicators to assume that inflation may further increase in the Size: 1MB.

RATIONAL EXPECTATIONS EQUILIBRIUM: GENERIC EXISTENCE AND THE INFORMATION REVEALED BY PRICES BY RoY RADNER When traders come to a market with different information about the items to be traded, the resulting market prices may reveal to some traders information originally available only to others.

Rational Expectations Theory: The rational expectations theory is an economic idea that the people make choices based on their rational outlook, available information and past experiences. The. An oil-importing country with market power therefore influences the current price by choosing its future levels of imports or import tariffs.

This paper characterizes the Markov equilibria of two games in which large importers who behave strategically confront competitive suppliers of a nonrenewable by: Rational Expectations with Mnrkel Power: the Paradox of the Disadvantageous Tariff on Oil" American Economic Review, ().

Regulation in the European Community",Author: Konstantine Gatsios and Larry S. Karp. David Newbery Publications. Posted on 7 April by EPRG Admin • 0 Comments E. and Newbery, D.M. () ‘Disadvantageous Oil Tariffs and Dynamic Consistency’, American Economic Review, 80 (1 ‘The Choice of Techniques and the Optimality of Market Equilibrium with Rational Expectations’, Journal of Political Economy, 90(2.

Computing equilibria in an industry producing an exhaustible resource. Authors; Authors and affiliations; G. Folie; (), "Rational Expectations with Market Power — the Paradox of the Disadvantageous Tariff on Oil", Discussion PaperUniversity of Author: G. Folie, A. Ulph. Rational Expectations with Market Power - The Paradox of the Disadvantageous Tariff on Oil (July ) E.

Description Rational expectations with market power - the paradox of the disadvantageous tariff on oil FB2

Maskin & D. Newbery. The Long Run Evolution of a Rationed Equilibrium Model (June ) M.C. Blad & A.P.

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Kirman. Anticipated Profitability of Mergers: An Analysis of the Characteristics of Acquired and Acquiring Firms (April ). Rational Expectations, the Efficient Market Hypothesis, and the Santa Fe Artificial Stock Market Model Leigh Tesfatsion Department of Economics Iowa State University Implications of Strong-Form Rational Expectations 1.

If there is a change in the way a variable is determined, then. The so-called paradox of electoral participation is said by political scientists to be 'the paradox that ate rational choice theory' (Grofman ), as rationalist explanations are unable to Author: Bernard Grofman.

B) expectations influence only a few individuals, have little impact on the overall economy, but can have important effects on a few markets.

C) expectations influence many individuals, have little impact on the overall economy, but can have distributional effects. An equilibrium analysis of search and breach of contract, coautore Peter A Diamond, Coventry, University of Warwick, Rational expectations with market power: the paradox of the disadvantageous tariff on oil, coautore David M.

Newbery, Cambridge, Mass., Massachusetts Institute of Technology. Access statistics for papers by Eric S. Maskin. Last updated Update your information in the RePEc Author Service. Short-id: pma Jump to Journal Articles Edited books Chapters Editor Working Papers The economics of malaria control in an age of declining aid.

the sequence of market data is analyzed in Section 5. Section 6 contains the proof of our major theorem. Summaries and conjectures are collected in Section 7. THE MODEL Our intent is to construct the simplest possible model to illustrate our alternative concept of rational expectations equilibrium.

Macroeconomic Analysis without the Rational Expectations Hypothesis∗ Michael Woodford Columbia University Aug Abstract This paper reviews a variety of alternative approaches to the specification of the expectations of economic decisionmakers in dynamic models, and reconsid.

ADVERTISEMENTS: Read this article to learn about the four theories of expectations formation in economic theory. Theory 1 # Cobweb Model: As a model of expectation, the ‘Cobweb Model’ of a market is familiar to practically all students of economics. While this model is known as an example of dynamics and market stability; it is [ ].

Abstract. The theory of exhaustible resources exploited in either perfectly competitive or fully monopolised markets is now well-understood [for example, Dasgupta/Heal chs.

6 and 11]. However, neither of these models can be applied to some important real world markets for exhaustible resources, such as bauxite, copper, tin, and above all, crude by: 7. Ball, Laurence, Mankiw, N. Gregory, and Romer, David “The New Keynesian Economics and the Output – Inflation Trade off”.

Brookings Papers on Economic Activity. 1, 1 -6, Reprinted in Mankiw and Romer () Barro, Robert J “Rational Expectations and the Role of Monetary Policy”.

Journal of Monetary Economics 2 (January. Rational Expectations and Efficiency in Futures Markets 1st Edition by Barry Goss (Editor) ISBN Format: Hardcover. Disadvantageous oil tariffs and dynamic consistency, coautore David M.

Newbery, Cambridge, University of Cambridge, On the fair allocation of indivisible goods, Cambridge, Mass., Harvard Institute of Economic Research, Implementation and renegotiation, coautore John Moore, London School of Economics and Political Science, London.

The equilibrium market power can range from 1=2 to in nity, independent of the joint distribution of types. The market power depends on the information structure agents have, but the set of possible parameters for the market power is independent of the number of agents.

Details Rational expectations with market power - the paradox of the disadvantageous tariff on oil FB2

The interpretation of the driving forces behind the market. In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid.

Rational expectations ensure internal consistency in models involving uncertainty. To obtain consistency within a model, the predictions of future values of economically relevant variables.

ADVERTISEMENTS: Read this article to learn about the seven major implications and challenges of rational expectations. (i) Validity of Impotency Result: The most important implication of the rational expectations model on economics during the last decade or so has been that aggregate demand management designed to lower unemployment will always be ineffective.The three major themes of Janos Kornai's work reflected in the title of this book--planning, shortage, and transition, or transformation--figure prominently in the essays.

Rational expectations with market power: the paradox of the disadvantageous tariff on oil by Eric Maskin Maskin, Eric S. Adam Smith argued in his book The Wealth of Nations that in a free market, where the government does not control the production of goods and services, changes in prices lead firms to produce the goods and services most desired by consumers.

If consumers demand more of a good, it's price will rise.