Continue with the idea that markets are uncompetitive. At the micro-level, the market is constituted by rational players, which takes proportion \(p\) and irrational ones, \(1-p\). They together make the whole market unresponded.
- A potential study may focus on (1). the drivers of \(p\). (2). modelling the irrational market, establishing a model from micro to macro.
- For (1), positive feedback or negative feedback may behave differently. Need some psychological knowledge and natural experiment.
- Using how does market react to positive or negative shocks to distinguish the irrational proportion of people.