Aggregation and the analysis of markets |
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Authors: | Donald W. Katzner |
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Affiliation: | University of Massachusetts , Amherst |
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Abstract: | The case for aggregating relations in Economics is often tenuous. This paper shows that under conditions of genuine ignorance and real historical time, it is not possible to aggregate from individual demand and supply functions to market-level demand and supply functions. Hence the traditional analysis of markets based on market demand and market supply is called into question. Two proposals for replacing the traditional market analysis are suggested that do not rely on aggregation within markets. |
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