IDEAS home Printed from https://ideas.repec.org/a/spr/specre/v6y2004i2p153-158.html
   My bibliography  Save this article

Option to wait in a search model

Author

Listed:
  • Klaus Kultti

    ()

  • Juha Virrankoski

    ()

Abstract

We consider a standard search model with buyers and sellers. Upon meeting the buyers make a take-it-or-leave-it offer, but the sellers have an option not to trade immediately but wait for more agents to appear. If more buyers come, there is excess demand, and the buyers engage in auction to get the good. Analogously, if more sellers come, the sellers engage in a Bertrand-type pricing game to sell the object. The option to wait restricts the price offer of the buyer; in an equilibrium in which trades are consummated without delay there is a unique price offer for the buyer. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Klaus Kultti & Juha Virrankoski, 2004. "Option to wait in a search model," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(2), pages 153-158, July.
  • Handle: RePEc:spr:specre:v:6:y:2004:i:2:p:153-158
    DOI: 10.1007/s10108-003-0073-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10108-003-0073-z
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Option to wait; bargaining; auction; search;

    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:spr:specre:v:6:y:2004:i:2:p:153-158. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.