Common wisdom in financial markets is that there is temporary arbitrage, or at least a skewed split of surplus, that can be exploited by agents using private information. This is reflected in the enormous investment in market data and trading …
Why doesn't migration, joint ventures and foreign direct investment rapidly diffuse technology by investing in or moving to cheaper locations?
Walrasian market clearing requires solving a large-scale optimization (or, potentially, fixed-point) problem. Algorithms for the auctioneer to solve these problems may be bounded by the curse-of-dimensionality - known in computer science as …