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Trading in networks: Theory and experiments

Choi, S and Galeotti, A and Goyal, S (2017) Trading in networks: Theory and experiments. [UNSPECIFIED]

Choi et al - 2015 - Trading in Networks.pdf

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© The Authors 2017. Published by Oxford University Press on behalf of the European Economic Association. All rights reserved. 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.

Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 27 Jan 2016 10:41
Last Modified: 03 Jan 2018 21:15

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