A simple spatial model for Edgeworth cycles

Maskin & Tirole (1998) formalise Edgeworth's (1925) model of a dynamic equilibrium between two players where prices increase sharply and decrease slowly; the Edgeworth Cycle. Here, we present an application of the model, showing how Edgeworth Cycles might arise in a marketplace where spatia...

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Bibliographic Details
Main Authors: Bloch, Harry, Wills-Johnson, Nick
Format: Working Paper
Published: Centre for Research in Applied Economics, Curtin Business School 2010
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/17074