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Multilateral and Bilateral Meetings with Production Heterogeneity

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Author Info
Klaus Kultti (Department of Economics, University of Helsinki, Finland)
Toni Riipinen (LTT Research Ltd, Finland)

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Abstract

We study different trading processes in the context of a search-based model of endogenous money. We incorporate heterogeneity into the model by allowing multiple meetings of agents and divisible production. We then determine the equilibrium using three different trading mechanisms: auctions, pairwise bargaining and price posting. The welfare under these mechanisms is compared using specific functional forms for utility and cost functions. The analysis is done numerically with the bench mark of a social welfare maximising planner.

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File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/f2003_1c.pdf
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Publisher Info
Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 16 (2003)
Issue (Month): 1 (Spring)
Pages: 27-37
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Handle: RePEc:fep:journl:v:16:y:2003:i:1:p:27-37

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Web page: http://www.taloustieteellinenyhdistys.fi
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Related research
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Find related papers by JEL classification:
D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

References listed on IDEAS
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  1. Trejos, Alberto & Wright, Randall, 1995. "Search, Bargaining, Money, and Prices," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 118-41, February. [Downloadable!] (restricted)
  2. Kiyotaki, Nobuhiro & Wright, Randall, 1993. "A Search-Theoretic Approach to Monetary Economics," American Economic Review, American Economic Association, vol. 83(1), pages 63-77, March. [Downloadable!] (restricted)
  3. Peters, Michael, 1992. "On the Efficiency of Ex Ante and Ex Post Pricing Institutions," Economic Theory, Springer, vol. 2(1), pages 85-101, January.
  4. Lu, Xiaohua & McAfee, R. Preston, 1996. "The Evolutionary Stability of Auctions over Bargaining," Games and Economic Behavior, Elsevier, vol. 15(2), pages 228-254, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.


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