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On a parabolic free boundary equation modeling price formation. (English) Zbl 1183.35278

The authors consider one-dimensional nonlocal free boundary problems and prove short-time existence of solution. They illustrate the behaviour of solutions with numerical experiments too.

MSC:

35R35 Free boundary problems for PDEs
35K15 Initial value problems for second-order parabolic equations
91B60 Trade models
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