Buyer’s equilibrium with capacity constraints and restricted mobility: A recursive approach
AbstractWe study a decentralized trading model as in Peters (1984a), where heterogeneous market participants face a trade-off between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 118 (2013)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/ecolet
Nash equilibrium; Recursive methods; Existence; Heterogeneity; Matching;
Other versions of this item:
- Gabriele Camera & Jaehong Kim, 2012. "Buyer's Equilibrium with Capacity Constraints and Restricted Mobility: a Recursive Approach," Working Papers 12-28, Chapman University, Economic Science Institute.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D39 - Microeconomics - - Distribution - - - Other
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
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