Title: Stability of Walrasian and Marshallian adjustment mechanisms in multiple markets
Authors: E.C.H. Veendorp
Addresses: Economics Department, Clark University, 950 Main Street, Worcester, MA 01610, USA
Abstract: Comparing the convergence of a Walrasian price adjustment process and that of a Marshallian quantity adjustment process in a multiple market setting, we show that both mechanisms are locally stable for any adjustment speeds if the demand system is characterised by a negative dominant diagonal.
Keywords: local stability; Walrasian process; Marshallian process; dominant diagonal matrices; multiple markets; price adjustment; quantity adjustment.
Global Business and Economics Review, 2008 Vol.10 No.1, pp.93 - 97
Published online: 24 Jan 2008 *
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