original papers : Competition for goods in buyer-seller networks
AbstractThis paper studies competition in a network and how a network structure determines agents' individual payoffs. It constructs a general model of competition that can serve as a reduced form for specific models. The paper shows how agents' outside options, and hence their shares of surplus, derive from "opportunity paths" connecting them to direct and indirect alternative exchanges. Analyzing these paths, results show how third parties' links affect different agents' bargaining power. Even distant links may have large effects on agents' earnings. These payoff results, and the identification of the paths themselves, should prove useful to further analysis of network structure.
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Bibliographic InfoArticle provided by Springer in its journal Review of Economic Design.
Volume (Year): 5 (2000)
Issue (Month): 3 ()
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Web page: http://link.springer.de/link/service/journals/10058/index.htm
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- D00 - Microeconomics - - General - - - General
- D40 - Microeconomics - - Market Structure and Pricing - - - General
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- Takács, Károly, 2010.
[Network experiments]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 958-979.
- Rodrigo Harrison, 2003.
"Global Games with Strategic Substitutes,"
gueconwpa~03-03-06, Georgetown University, Department of Economics.
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