On a possible interpretation of market dynamics based on the internal model principle
type: Item
instance of: scholarly article
title: On a possible interpretation of market dynamics based on the internal model principle
zbMATH Open document ID: 0714.90021
DOI: 10.1016/0096-3003(90)90106-D
author: Renzo Mosetti
published in: Applied Mathematics and Computation
publication date: 1990-01-01T00:00:00Z
review text: The aim of the paper is to deal with the question: What is the structure of an economic market which is capable of showing both stable prices and a perfectly predictable equilibrium process?, by considering the market as a fairly general dynamical control system. It is assumed that this system possesses properties which imply that it is subject to the so- called ``internal model principle'' (IMP): the regulator which controls the system generates a model of the dynamic structure of the system. This principle (a theorem by \textit{J. S. A. Hepburn} and \textit{W. W. Wonham} [see e.g. IEEE Trans. Autom. Control AC-29, 397-403 (1984; Zbl 0543.93028)]) is stated and obtained within the framework of nonlinear control systems theory. The paper thus suggests a way to reconcile a dynamical systems approach with approaches taken by static equilibrium theory to market price generating mechanisms.
reviewed by: Mogens Niss
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 93C95
Mathematics Subject Classification ID: 93C15
Mathematics Subject Classification ID: 91B24
zbMATH DE Number: 4176784
zbMATH Keywords: stable prices
zbMATH Keywords: perfectly predictable equilibrium process
zbMATH Keywords: internal model principle
MaRDI profile type: Publication
cites work: Q5588318
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cites work: Q3039178
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full work available at URL: 0096-3003(90)90106-d
OpenAlex ID: W2050556281
description: scientific article; zbMATH DE number 4176784