Download Advances in Behavioral Economics: Essays in Honor of Horst by Professor Dr. Friedel Bolle, Professor Dr. Michael Carlberg PDF

By Professor Dr. Friedel Bolle, Professor Dr. Michael Carlberg (auth.), Professor Dr. Friedel Bolle, Professor Dr. Michael Carlberg (eds.)

The connection of monetary idea and behaviour is likely one of the significant subject matters of this ebook - and in addition a relevant factor in fiscal contemplating Horst Todt to whom this ebook is devoted. The contributions take care of themes of normative and descriptive decision-making: They examine, for example, the emergence of choices or the position of imitation as a aggressive precept. a few contributions deal with designated decision-making difficulties on a micro or on a macro point, while others pay attention to the main questions of decision-making or at the conceptualization of vital yet fuzzy notions like energy or solidarity.

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Extra resources for Advances in Behavioral Economics: Essays in Honor of Horst Todt

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Although in reality a monopolist adjusts his price at discrete time intervals, we employ a continuous time approach. The following arguments can be given in favor of differential equations. 6 1. There is no natural discrete unit of time. In this respect, choosing years, months or days is completely arbitrary. Therefore, in employing a discrete time model, it should always be checked whether its main implications depend on the chosen length of time intervals. If they are actually independent of period length, they should also be robust with respect to a change of the time span if it tends to zero, that is when we pass on from difference equations to differential equations.

Although the initial value of p is positive and the equilibrium is reached asymptotically, p enters the negative region during the adjustment process. can be expected to lead to the true optimum of a monopolistic firm. Such results can raise the reliance on the implications of basic neoclassical models. Unfortunately, this model is only a first step considering its simple structure. Although it seems to be possible that similar results could be obtained for other static basic neoclassical market forms such as perfect and monopolistic competition or oligopoly, there is much less hope in formulating suitable rules of thumb for dynamic models.

0 11 The solution of x = f(x) starting at x(O) = Xo E X is denoted by x(t, xo). 34 Walter Buhr and Thomas Christiaans Proposition 1. 6) is asymptotically stable. Its basin of attraction includes the region D = {(P,q) E R2 : V(p,q) < l}, where 1 = h(s) ds > O. For all initial values in D, the price p(t) is positive for all t ~ O. J: Proof. The function f p V(p, q) = ~q2 - h(s) ds, p is a suitable Lyapunov function for p > O. 3), and V (p, 0) = O. The derivative with respect to t is V (p, q) V(p,q) = qq - h(P)p = q[h(P) - q]- h(P)q = _q2 <0 O.

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