Condorelli, Daniele and Galeotti, Andrea (2012) Bilateral Trading in Networks. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester. (Unpublished)
Condorelli, Daniele and Galeotti, Andrea (2012) Bilateral Trading in Networks. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester. (Unpublished)
Condorelli, Daniele and Galeotti, Andrea (2012) Bilateral Trading in Networks. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester. (Unpublished)
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) |
|---|---|
| Uncontrolled Keywords: | HB; |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 06 Feb 2019 14:06 |
| Last Modified: | 06 Jan 2022 13:57 |
| URI: | http://repository.essex.ac.uk/id/eprint/24004 |
Available files
Filename: dp704.pdf