Re: Questions from ISI MSQE 2014 paper

Posted by Rajat on Feb 27, 2015; 2:11am
URL: http://discussion-forum.276.s1.nabble.com/Questions-from-ISI-MSQE-2014-paper-tp7595836p7595855.html

Annakin, agree with your point that p should be something just shy of the 5 mark, just so that the 6th trader is induced to buy a chicken. Also, in that case p can take a number of values between 4 and 5 which calls into question the possibility of a unique equilibrium. But, lets first define equilibrium. Does the 'uniqueness' depend on the level of p ? or is it the just about the allocation of chickens. Iff it is only about allocation of chickens, then we do have an unique equilibrium.