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Toraubally, W.A. 
ORCID: 0000-0002-2684-7360,
2019.
Arbitrage equilibria in large games with many commodities.
Economics Letters, 179, pp. 24-28.
ISSN 0165-1765
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Abstract
Can identical goods sell at different prices in identical markets when people are perfectly mobile? We provide a formal account of strategic behaviour in large games with many commodities, and exhibit how it drives price dispersion at equilibrium. Interactions between agents are modelled using a Shapley-Shubik market game. We demonstrate the failure of the law of one price in this setup through a robust counterexample. The proposed model, and our findings, constitute an alternative and plausible explanation to some "anomalies" which routinely appear in a wide array of fields, ranging from banking, business economics, to international, and labour economics.
| Item Type: | Journal article | ||||||
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| Publication Title: | Economics Letters | ||||||
| Creators: | Toraubally, W.A. | ||||||
| Publisher: | Elsevier | ||||||
| Date: | June 2019 | ||||||
| Volume: | 179 | ||||||
| ISSN: | 0165-1765 | ||||||
| Identifiers: |
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| Divisions: | Schools > Nottingham Business School | ||||||
| Record created by: | Jonathan Gallacher | ||||||
| Date Added: | 08 Apr 2022 14:11 | ||||||
| Last Modified: | 08 Apr 2022 14:11 | ||||||
| URI: | https://irep.ntu.ac.uk/id/eprint/46079 |
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