<p>There is the famous <a href="https://en.wikipedia.org/wiki/Cobweb_model" rel="nofollow noreferrer">Cobweb model</a>. Starting from a situation of equilibrium, it analyses the effect of a shock, and how long it takes to reach the equilibrium, which depends entirely on the elasticities (or slopes) of demand and supply. Thus, by estimating empirically such elasticities <strong>for a given period</strong> (e.g. year), you can predict/forecast how many periods (e.g. years) it will take the market to settle after a shock. (Strictly speaking, it is infinity, but you just need to select a threshold or margin of error to consider the market in equilibrium)</p>

<p>$\hskip4cm$ <a href="https://i.sstatic.net/Iij4o.gif" rel="nofollow noreferrer"><img src="https://i.sstatic.net/Iij4o.gif" alt="enter image description here"></a></p>

<p>(Source of image <a href="http://masters.donntu.org/2010/fknt/mospan/diss/indexe.htm" rel="nofollow noreferrer">here</a>)</p>

<p>A huge literature exploded after the original paper, so if you google Cobweb models you get tons of hits. A very good treatment of this model can be found in <a href="https://academic.oup.com/ajae/article-abstract/46/4/732/89790/Cobweb-Models?redirectedFrom=fulltext" rel="nofollow noreferrer">Waugh (1964)</a>. He extends the simple model to multiple markets.</p>

CC BY-SA 3.0
2017-07-28T06:58:12.733Z
Gif seems to stop after a while or its just me?
luchonacho
CC BY-SA 3.0
2017-07-28T06:48:32.773Z
2017-07-28T06:55:36.957Z
2017-07-28T06:55:36.957Z
luchonacho
<p>Are there any models which calculate the time (i.e. minutes, hours, days ect.) it takes for equilibrium to occur? I.e how long it takes for market forces to settle.</p>

CC BY-SA 3.0
2017-07-27T10:20:04.123Z
Given that you have tagged this general equilibrium, are you asking about a case where initially there is equilibrium in all markets, then there is a single disturbance or shock, and then with no further disturbance the economy settles to a new equilibrium?  If so this seems extremely hypothetical as disturbances somewhere in an economy will be frequent.  The scenario of settling to equilibrium seems more applicable to a single market.
Adam Bailey
CC BY-SA 3.0
2017-07-27T16:18:50.833Z
@AdamBailey My question is more focused on a single market. Changing tag now.
EconJohn
<reference-request><competitive-equilibrium>
Papers on time it takes to reach market equilibrium?
EconJohn
# Papers on time it takes to reach market equilibrium?

(Asked by: username_0 on 2017-07-26)

Are there any models which calculate the time (i.e. minutes, hours, days ect.) it takes for equilibrium to occur? I.e how long it takes for market forces to settle.

**Tags:** reference-request, competitive-equilibrium

> **Comments:**
> **username_1**: Given that you have tagged this general equilibrium, are you asking about a case where initially there is equilibrium in all markets, then there is a single disturbance or shock, and then with no further disturbance the economy settles to a new equilibrium?  If so this seems extremely hypothetical as disturbances somewhere in an economy will be frequent.  The scenario of settling to equilibrium seems more applicable to a single market.  
> **username_0**: @AdamBailey My question is more focused on a single market. Changing tag now.  

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## 1 answers

### Answer by username_2 on 2017-07-28. Score: 1 | Accepted answer

There is the famous [Cobweb model](https://en.wikipedia.org/wiki/Cobweb_model). Starting from a situation of equilibrium, it analyses the effect of a shock, and how long it takes to reach the equilibrium, which depends entirely on the elasticities (or slopes) of demand and supply. Thus, by estimating empirically such elasticities **for a given period** (e.g. year), you can predict/forecast how many periods (e.g. years) it will take the market to settle after a shock. (Strictly speaking, it is infinity, but you just need to select a threshold or margin of error to consider the market in equilibrium)

$\hskip4cm$ [![enter image description here](https://i.sstatic.net/Iij4o.gif)](https://i.sstatic.net/Iij4o.gif)

(Source of image [here](http://masters.donntu.org/2010/fknt/mospan/diss/indexe.htm))

A huge literature exploded after the original paper, so if you google Cobweb models you get tons of hits. A very good treatment of this model can be found in [Waugh (1964)](https://academic.oup.com/ajae/article-abstract/46/4/732/89790/Cobweb-Models?redirectedFrom=fulltext). He extends the simple model to multiple markets.

> **Comments:**
> **username_2**: Gif seems to stop after a while or its just me?  

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