This is the third of six chapters on the logic of price. It deals with the phenomenon of the market, and starts with a discourse on the ‘logic of price’ and a critique of the supply and demand theory. The considerations are taken further with reference to a very simple but none the less adequate linear market model, with an appeal to theorems about distribution matrices known from the theory of Markov processes; a further treatment, without the linearity, involves the KKM lemma. Global stability for a loosely defined tâtonnement is demonstrated from a convergence of infinite products of distribution matrices, analogous to the familiar convergence of powers. The nine sections of the chapter are: the logic of price; supply and demand; price formation; market functions; intercept and slope; linear markets; tâtonnement; continuous markets; and uniqueness and stability.
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.