A Chamberlin market is a trading institution with multiple traders, decentralized bilateral bargaining and publicly declared transaction prices (Chamberlin (1948)). This paper investigates the determinants of price dynamics in Chamberlin markets as well as double oral auctions. We test and compare the excess supply model (Walras (1874, 1877, 1889, 1896) and the excess rent model (Smith (1962, 1...

We consider Nonlinear Equilibrium (NE) for optimal allocation of limited resources. The NE is a generalization of the Walras-Wald equilibrium, which is equivalent to J. Nash equilibrium in an n-person concave game. Finding NE is equivalent to solving a variational inequality (VI) with a monotone and smooth operator on Ω = R+ ⊗ R+ . The projection on Ω is a very simple procedure, therefore our m...

This paper applies the Jones Kierzkowski model to the contract manufacturing service industry. Stylized facts of that industry imply a theory of non-convex general equilibrium. The cost structure combines a constant marginal cost and a positive fixed cost; Marshalian free entry free exit prevails. This implies a distinct market structure (which is nether perfect nor monopolistic competition, no...

We propose a two-stage stochastic variational inequality model to deal with random variables in variational inequalities, and formulate this model as a two-stage stochastic programming with recourse by using an expected residual minimization (ERM) solution procedure. The solvability, differentiability and convexity of the two-stage stochastic programming and the convergence of its sample averag...

Recent growth theories' have been concerned mainly with the analysis of technical change and aggregate growth in economies with identical agents. This precludes any analysis of the relationship between growth and inequality. The purpose of this Walras-Bowley lecture is to argue that Schumpeterian Growth Theory (see Aghion-Howitt (1992, 1998)), in which growth is primarily driven by a sequence o...

The logic of economic inquiry requires two distinct research programs. One program treats economic life in terms of invariant formal categories across time and place. The other program treats the continual of novelty and turbulence through time through human interaction. These programs are not commensurable: one can’t be reduced to the other. The former program must be conveyed by a theory of e...