ECON 219 Lecture Notes - Lecture 11: Vise, Call Option, Contract Curve
10
ECON 219 Full Course Notes
Verified Note
10 documents
Document Summary
Inflation real problem price ratio disturbed not price fluctuating. Final price ratio: between the two extremes ex between 1:1 or 1:2. When situation gets more attractive buy more wine with cloth they have to offer (portuguese) How is a final price ratio arrived at arising out of the different relative prices. Economic rule in one market eng and portuguese one price for one commodity. Doesn"t show how gets the gains from trade. Game theory examples examines questions such as are there conditions for contracts are self enforcing. If not, how to bring about rule of law how to make it enforceable. Property rights in contracts are essential to efficient economy. The design of trading situations where cheating can be avoided or inevitable. Lying: examine proposition table data item economists want to conceal when making a deal, conceal supply and demand schedule. Solution: financial market universe of brokers, bankers, allocate capital. Uncovering true prices and values bankers search investment opportunities.
