Buyer's Equilibrium with Capacity Constraints and Restricted Mobility: a Recursive Approach
We study a decentralized trading model as in Peters (1984), where heterogeneous market participants face a trade-o 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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- James Albrecht, Pieter Gautier, & Susan Vroman, 2003.
"Equilibrium Directed Search with Multiple Application,"
gueconwpa~03-03-02, Georgetown University, Department of Economics.
- James Albrecht & Pieter A. Gautier & Susan Vroman, 2006. "Equilibrium Directed Search with Multiple Applications," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 869-891.
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- James Albrecht & Pieter Gautier, 2004. "Equilibrium Directed Search with Multiple Applications," Econometric Society 2004 Latin American Meetings 330, Econometric Society.
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- Camera, Gabriele & Selcuk, Cemil, 2004.
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1173, Purdue University, Department of Economics.
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- Selcuk, Cemil, 2011.
"Trading Mechanism Selection with Directed Search when Buyers are Risk Averse,"
36224, University Library of Munich, Germany.
- Selcuk, Cemil, 2012. "Trading mechanism selection with directed search when buyers are risk averse," Economics Letters, Elsevier, vol. 115(2), pages 207-210.
- Montgomery, James D, 1991. "Equilibrium Wage Dispersion and Interindustry Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 163-79, February.
- Kenneth Burdett & Shouyong Shi & Randall Wright, 2001. "Pricing and Matching with Frictions," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1060-1085, October.
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