Formation of buyer-seller trade networks in a quality-differentiated product market
AbstractWe examine the formation of buyer-seller links when exchange can take place only if such a link exists. Sellers produce products of different qualities, and multiple sellers can form a sellers' association to pool their customers setting uniform prices. Buyers form trade links with individual sellers or sellers' associations. We show which buyer-seller links will form and find the set of links that are stable and show how these links influence prices. We also show that a trade network mismatch may occur where a high-quality good remains unsold even without an economy-wide excess supply of goods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 39 (2006)
Issue (Month): 3 (August)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
Find related papers by JEL classification:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- CAULIER, Jean-François & MAULEON, Ana & VANNETELBOSCH, Vincent, 2008.
"Contractually stable networks,"
CORE Discussion Papers
2008066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean-Francois Caulier & Ana Mauleon & Vincent VAnnetelbosch, 2007. "Contractually Stable Networks," NajEcon Working Paper Reviews 843644000000000084, www.najecon.org.
- Jean-François Caulier & A. Mauleon & Vincent Vannetelbosch, 2013. "Contractually stable networks," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) hal-00633611, HAL.
- Jean-François, CAULIER & Ana, MAULEON & Vincent, VANNETELBOSCH, 2008. "Contractually stable networks," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2008045, Université catholique de Louvain, Département des Sciences Economiques.
- Vincent Vannetelbosch & Jean-François Caulier & Ana Mauleon, 2009. "Contractually Stable Networks," Working Papers 2009.47, Fondazione Eni Enrico Mattei.
- Francis Bloch & Garance Genicot, 2005.
"Informal Insurance in Social Networks,"
2005 Meeting Papers
156, Society for Economic Dynamics.
- Francis Bloch (GREQAM and Universite de la Mediterranee), Garance Genicot (Georgetown University, and Debraj Ray (New York University and Instituto de Analisis Economico (CSIC)), 2004. "Informal Insurance in Social Networks," Working Papers gueconwpa~04-04-16, Georgetown University, Department of Economics.
- MAULEON, Ana & SEMPERE-MONERRIS, Jose & VANNETELBOSCH, Vincent J., 2005.
"Networks of manufacturers and retailers,"
CORE Discussion Papers
2005041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- MAULEON, Ana & SEMPERE MONERRIS, Jose J. & VANNETELBOSCH, Vincent J., . "Networks of manufacturers and retailers," CORE Discussion Papers RP -2291, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ana, MAULEON & José, SEMPERE-MONERRIS & Vincent, VANNETELBOSCH, 2005. "Networks of Manufacturers and Retailers," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005036, Université catholique de Louvain, Département des Sciences Economiques.
- CAULIER, Jean-François & MAULEON, Ana & SEMPERE-MONERRIS, José J. & VANNETELBOSCH, Vincent, 2011. "Stable and efficient coalitional networks," CORE Discussion Papers 2011039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Matthew O. Jackson, 2003.
"A survey of models of network formation: Stability and efficiency,"
1161, California Institute of Technology, Division of the Humanities and Social Sciences.
- Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA.
- Hemant Patil, 2011. "Buyer–seller networks with demand shocks and intermediation," Review of Economic Design, Springer, vol. 15(2), pages 121-145, June.
- Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004.
"Farsighted Network Formation,"
122, Centre for Development Economics, Delhi School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.