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The sphere of modern financial economics encompases finance, micro investment theory and much of the economics of uncertainty. As is evident from its influence on other branches of economics including public finance, industrial organization and monetary theory, the boundaries of this sphere are both permeable and flexible. The complex interactions of time and uncertainty guarantee intellectual challenge and intrinsic excitement to the study of financial economics. Indeed, the mathematics of the subject contain some of the most interesting applications of probability and optimization theory. But for all its mathematical refinement, the research has nevertheless had a direct and significant influence on practice. It was not always thus. Thirty years ago, finance theory was little more than a collection of anecdotes, rules of thumb, and manipulations of accounting data with an almost exclusive focus on corporate financial management. There is no need in this meeting of the guild to recount the subsequent evolution from this conceptual potpourri to a rigorous economic

In this paper we study algorithms for computing market equilibrium in markets with linear utility functions. The buyers in the market have an initial endowment given by a portfolio of items. The market equilibrium problem is to compute a price vector which ensures market clearing, i.e. the demand

This paper establishes that when there is not a complete set of markets but more than one commodity the stock market equilibrium will not in general be a constrained Pareto optimum. The economy will lack both the property of exchange and production efficiency. Necessary conditions which must

In this paper we consider the formulation and uses of electricity market equilibrium models.

Trades with each other simultaneously At the price which clears the market (Equilibrium Price: pi∗) Well-studied and produces known ML aggregations (arithmetic mean, geometric mean, etc.) But hard to implement Sequential Markets- with Market Maker (MM): Trades sequentially with MM MM is similar

or Market Clearance Prices. We study two market equilibrium models, the Fisher setting with linear utilities and the Arrow-Debreu model with linear utilities. Then we see an application of the Fisher model to wireless networks. A market consists of a set of sellers who have goods to sell and buyers

In this paper we show that in an exchange economy with quasi-linear preferences it is possible to manipulate market equilibrium by destroying and withholding ones initial endowments.

Class size and sorting in market equilibrium: theory and evidence

The paper derives a general form of the term structure of interest rates. The following assumptions are made: (A.l) The instantaneous (spot) interest rate follows a diffusion process; (A.2) the price of a discount bond depends only on the spot rate over its term; and (A.3) the market is efficient