symmetric supply

Abstract. implementing a set of microeconomic criteria, we develop price dynamicsequations using a function of supply with key symmetry properties. the function ofsupply can be linear or nonlinear. the type of function determines the nature of thetail of the distribution based on the randomness in the supply and demand. for example, if supply and demand are normally distributed, and the function is assumed tobe linear, then the density of relative price change has behavior x−2for large x (i.e.,large deviations). the exponent approaches −1 if the function of supply and demandinvolves a large exponent. the falloff is exponential, i.e., e−x, if the function of supplyis logarithmic.