Market Instability Unleashed: Prices in Chaos, Opportunities Abound!
The article discusses how market instability can arise in a duopoly due to strategic trade. The researchers view the economy as a strategic game where buyers and sellers have power. They find that market prices can fluctuate unpredictably due to multiple mixed strategies used by players. These fluctuations do not help in discovering new information. The study shows that there are various strategies that can improve outcomes for all parties involved, leading to natural instabilities in markets.