The relations between the

equilibrium prices can be explained in several ways;

By focusing on information constraints and the degree to which a monetary inflation is anticipated, Salter and Luther (as well as Lucas) appear to believe that agents, when formulating their plans, try to appraise the underlying "real" data, calculate the

equilibrium prices that are implied in these data, and formulate plans based on these prices.

Hence there exists multiplicity of equilibria with respect to

equilibrium prices and multiplicity given

equilibrium prices.

2- Calculate Nash

equilibrium prices and flows for all the chains in the defined strategies.

This, he said, would be the pathway to achieve stability and materialise

equilibrium prices.

After the foreign exchange market stabilized in the following weeks, many investors started buying back bonds and yields fell back as market

equilibrium prices returned.

With the use of simulation software for data analysis, we can draw three Nash

equilibrium prices: [p.sub.1] = 23.67, [p.sub.2] = 19.6, and [p.sub.3] = 31.09; their profits are [[pi].sub.1] = 2804, [[pi].sub.2] = 9738.56, and [[pi].sub.3] = 71.286.

Our main contribution is to show how the impacts of SD population structure and negotiation on SP's and BA's

equilibrium prices and expected revenues depend on different demand models in a CMfg system with a dynamic SD population.

* Andrea Bufia, Boston University; Dimitri Vayanos, London School of Economics and NBER; and Paul Woolley, London School of Economics, "Asset Management Contracts and

Equilibrium Prices" (NBER Working Paper No.

Case 1:

Equilibrium prices in region [I.sup.+.sub.2] .