New Study Reveals Exchange Markets Without Endowment Effect Lack Equilibrium
The article explores if there is a balance point in markets where people value items differently when buying and selling. The researchers found that in these markets, if there is a gap between what people want to buy and what is available, a balance point called a Walrasian equilibrium does not exist. They used a mathematical framework to show that in these cases, prices and demand cannot be precisely measured at the same time.