A price model with finitely many agents
Published in Bulletin of the Portuguese Mathematical Society, 2019
Recommended citation: Alharbi, A., Bakaryan, T., Cabral, R., Campi, S., Christoffersen, N., Colusso, P., Costa, O., Duisembay, S., Ferreira, R., Gomes, D.A. and Guo, S., (2019). "A price model with finitely many agents." Bulletin of the Portuguese Mathematical Society.
We propose a price-formation model, with a population consisting of a finite number of agents storing and trading a commodity. We formulate our problem as an N-player dynamic game with a market-clearing condition. Subsequently, we show how to recast our game as an optimization problem for the overall trading cost. We show the existence of a solution using the direct method in the calculus of variations.
Recommended citation: Alharbi, A., Bakaryan, T., Cabral, R., Campi, S., Christoffersen, N., Colusso, P., Costa, O., Duisembay, S., Ferreira, R., Gomes, D.A. and Guo, S., (2019) “A price model with finitely many agents.” Bulletin of the Portuguese Mathematical Society.