Choi, Syngjoo and Galeotti, Andrea and Goyal, Sanjeev (2017) 'Trading in Networks: Theory and Experiments.' Journal of the European Economic Association, 15 (4). pp. 784-817. ISSN 1542-4766

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Abstract

We propose a model of posted prices in networks. The model maps traditional concepts of market power, competition, and double marginalization into networks, allowing for the study of pricing in complex structures of intermediation, such as supply chains, transportation and communication networks, and financial brokerage. We provide a complete characterization of equilibrium prices. Our experiments complement our theoretical work and point to node criticality as an organizing principle for understanding pricing, efficiency, and the division of surplus in networked markets.

Item Type:	Article
Additional Information:	sg472
Uncontrolled Keywords:	C70; C71; C91; C92; D40; Intermediation; competition; market power; double marginalization.
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of
SWORD Depositor:	Elements
Depositing User:	Elements
Date Deposited:	27 Jan 2016 10:41
Last Modified:	15 Jan 2022 00:40
URI:	http://repository.essex.ac.uk/id/eprint/15977

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