Article ID: | iaor20031288 |
Country: | Netherlands |
Volume: | 114 |
Issue: | 1 |
Start Page Number: | 167 |
End Page Number: | 181 |
Publication Date: | Aug 2002 |
Journal: | Annals of Operations Research |
Authors: | Kaniovski Yuri M., Flm Sjur Didrik |
Keywords: | economics |
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.