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Thomas E. Cone
''An asset market with backwards price comparative statics''
( 2019, Vol. 39 No.4 )
A simple asset market is developed in which an increase in supply can increase the equilibrium price, and an increase in demand can decrease the price. The key economic feature of the market is risk aversion. Furthermore, the equilibrium with the backward comparative statics is learnable by the market participants, even if they don't start out fully-informed rational.
Keywords: Microeconomics, Demand theory, Asset markets, Learning
JEL: D4 - Market Structure and Pricing: General
Manuscript Received : Oct 14 2019 Manuscript Accepted : Nov 03 2019

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