On the price trajectory control of a discrete dynamic producer-consumer market

摘要

The controllability of the price trajectory of dynamic producer-consumer markets is examined with discrete time scales. The basic model is a combination of Arrow's (1960) dynamic model and oligopolies. Sufficient and necessary trajectory controllability conditions are given under complete information, and static, adaptive, extrapolative expectations by the producers on the market price. In each particular case these conditions can be interpreted as the price trajectory must not have large sudden decreases.