Student Seminar Series - May 8, 2006
University of Minnesota
School of Statistics
College of Liberal Arts
Strategic
Market Games with Cyclic Production
Barbara Bennie
Monday, May 8, 2006
1:30 PM, 115
Ford Hall
Minneapolis, East Bank Campus
Refreshments at 1:00 PM
300 Ford Hall
Abstract
We
construct stationary Nash Equilibrium strategies for market economies
in which a continuum of agents compete via the bidding of fiat money to
purchase a non-durable good over countably many time periods. We
consider economies where the amount of good available in each time
period is not constant, but fluctuates either cyclically or
non-cyclically. Additionally, we consider some market economies where
agents are allowed to borrow or deposit money from a central bank at a
fixed interest rate. In these cases, attention is given to how the
central bank may adjust the interest rate to control inflation.