IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v109y1994i2p443-464..html
   My bibliography  Save this article

Small Deviations from Maximizing Behavior in a Simple Dynamic Model

Author

Listed:
  • Asher Wolinsky

Abstract

The motivating intuition is that the presence of nonmaximizing agents induces maximizing agents to take advantage of them, and that this might magnify the effect of small deviations from maximizing behavior. This intuition is explored using a simple dynamic model. With an inflexible entry process, small deviations from maximizing behavior may have a substantial impact on the allocation of gains from trade. With a flexible entry process, the effect is dampened by adjustments in entry. Yet these deviations result in a first-order efficiency loss, in contrast to the second-order loss that one would expect from looking at standard static models.

Suggested Citation

  • Asher Wolinsky, 1994. "Small Deviations from Maximizing Behavior in a Simple Dynamic Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 443-464.
    • Handle: RePEc:oup:qjecon:v:109:y:1994:i:2:p:443-464.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2118469
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:109:y:1994:i:2:p:443-464.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/qje .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.