IDEAS home Printed from https://ideas.repec.org/a/bla/jecrev/v69y2018i2p156-170.html
   My bibliography  Save this article

Middle Men: The Visible Market†Makers

Author

Listed:
  • Makoto Watanabe

Abstract

This paper presents a framework in which middlemen emerge to intermediate between ex†ante homogeneous buyers and sellers in the presence of search frictions. Middlemen announce prices, and hold an inventory to provide more sure services. Middlemen can mitigate trade imbalances with price competition. Using this framework I illustrate how the frictionless limit can emerge and how middlemen can implement the short†side principle for the market price to be Walrasian. The recent progress in the literature on intermediation will also be discussed.

Suggested Citation

  • Makoto Watanabe, 2018. "Middle Men: The Visible Market†Makers," The Japanese Economic Review, Japanese Economic Association, vol. 69(2), pages 156-170, June.
    • Handle: RePEc:bla:jecrev:v:69:y:2018:i:2:p:156-170
    DOI: 10.1111/jere.12168
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jere.12168
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jere.12168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pieter Gautier & Bo Hu & Makoto Watanabe, 2023. "Marketmaking Middlemen," RAND Journal of Economics, RAND Corporation, vol. 54(1), pages 83-103, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecrev:v:69:y:2018:i:2:p:156-170. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.