  This paper proposes an alternative to the classical price-adjustment
mechanism (called "t\^{a}tonnement" after Walras) that is second-order in time.
The proposed mechanism, an analogue to the damped harmonic oscillator, provides
a dynamic equilibration process that depends only on local information. We show
how such a process can result from simple behavioural rules. The discrete-time
form of the model can result in two-step limit cycles, but as the distance
covered by the cycle depends on the size of the damping, the proposed mechanism
can lead to both highly unstable and relatively stable behaviour, as observed
in real economies.
