Acta Oeconomica Pragensia 2005, 13(1):94-100 | DOI: 10.18267/j.aop.140

Stochastic Model of Thin Market with an Indivisible Commodity

Martin ©míd
Mgr. Martin ©míd - research fellow; Department of Econometrics, Institute of Information Theory and Automation of the Academy of Sciences of the Czech Republic, 182 08 Prague, Pod Vodárenskou věľí 4, Czech Republic, martin@klec.cz

In the paper, a thin market with an indivisible commodity, at which the market price is determined (by an organizer of the market) as the average price maximizing the traded volume, is modeled. Two models are presented - the first one with a finite, the second one with a possibly infinite number of participants. In both the cases, the joint distribution of the market price and the traded volume is derived.

Keywords: thin market, market price, traded volume, stochastic models
JEL classification: C65

Published: March 1, 2005  Show citation

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©míd, M. (2005). Stochastic Model of Thin Market with an Indivisible Commodity. Acta Oeconomica Pragensia, 13(1), 94-100. doi: 10.18267/j.aop.140
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