Condorelli, Daniele and Galeotti, Andrea (2012) Bilateral Trading in Networks. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester. (Unpublished)
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Abstract
We study an incomplete-information model of sequential bargaining for a single object, with the novel feature that agents are located in a network. In each round of trade, the current owner of the object either consumes it or makes a take-it-or-leave-it offer to some connected trader. Traders may buy in order to consume or to resale to others. We show that the equilibrium price dynamics is non-monotone and that traders that intermediate the object arise endogenously and attain a pro t. We also provide insights on how traders' equilibrium payoffs depend on their location in the network.
Item Type: | Monograph (Working Paper) |
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Uncontrolled Keywords: | HB; |
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: | 06 Feb 2019 14:06 |
Last Modified: | 06 Jan 2022 13:57 |
URI: | http://repository.essex.ac.uk/id/eprint/24004 |
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