http://knowledgeproblem.com/2005/10/24/rockets_and_fea/ Commentary on Economics, Information and Human Action Fri, 01 Jun 2012 16:51:44 +0000 hourly 1 http://wordpress.com/ http://knowledgeproblem.com/2005/10/24/rockets_and_fea/#comment-2417 Thu, 27 Oct 2005 21:13:53 +0000 http://knowledgeproblem.wordpress.com/2005/10/24/rockets_and_fea/#comment-2417 I should note that I have not (yet) read the article, but “falling” prices must occur after prices have gone “higher”, whatever that means. I’m assuming that profits are highest when falling just after a peak? If prices fell after a long plateau at some level, I wouldn’t expect much substantial margin increase….. would I be wrong?

]]> http://knowledgeproblem.com/2005/10/24/rockets_and_fea/#comment-2416 Tue, 25 Oct 2005 17:41:27 +0000 http://knowledgeproblem.wordpress.com/2005/10/24/rockets_and_fea/#comment-2416 I think this industry could be one where
Edgeworth price cycles might be observed.
(Bertrand oligopoly with output constraints)

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