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Trading in Networks: Theory and Experiments

Choi, S and Galeotti, A and Goyal, S (2015) Trading in Networks: Theory and Experiments. University of Essex, EssexLab, Colchester.

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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: Other
Uncontrolled Keywords: Intermediation, competition, market power, double marginalization
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 19 Jul 2016 10:46
Last Modified: 17 Aug 2017 17:25

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