Coles, Melvyn G (1999) Turnover Externalities with Marketplace Trading. International Economic Review, 40 (4). pp. 851-868. DOI https://doi.org/10.1111/1468-2354.00044
Coles, Melvyn G (1999) Turnover Externalities with Marketplace Trading. International Economic Review, 40 (4). pp. 851-868. DOI https://doi.org/10.1111/1468-2354.00044
Coles, Melvyn G (1999) Turnover Externalities with Marketplace Trading. International Economic Review, 40 (4). pp. 851-868. DOI https://doi.org/10.1111/1468-2354.00044
Abstract
<jats:p>This article considers equilibrium decentralized trade when there is a marketplace where buyers and sellers meet costlessly. Since buyers have idiosyncratic match payoffs for each seller's good, some buyers, rather than trade with the current stock of sellers, wait for new sellers to enter the marketplace to obtain a good they like. A turnover externality exists where all traders are better off with higher entry rates of new traders. Furthermore, this turnover externality supports multiple Pareto‐rankable equilibria. This provides new insights into similar results obtained in the random‐matching literature.</jats:p>
Item Type: | Article |
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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: | 04 Jan 2013 13:36 |
Last Modified: | 30 Oct 2024 19:37 |
URI: | http://repository.essex.ac.uk/id/eprint/4905 |