Bilateral Trading in Networks
We study an incomplete-information model of sequential bargaining for a single object, with the novel feature that agents are located in a network. In each round of trade, the current owner of the object either consumes it or makes a take-it-or-leave-it offer to some connected trader. Traders may buy in order to consume or to resale to others. We show that the equilibrium price dynamics is non-monotone and that traders that intermediate the object arise endogenously and attain a pro t. We also provide insights on how traders' equilibrium payoffs depend on their location in the network.
|Date of creation:||01 Mar 2012|
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- Giacomo Calzolari & Alessandro Pavan, 2005.
"Monopoly with Resale,"
1405, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Giacomo Calzolari & Alessandro Pavan, 2004. "Monopoly with Resale," Discussion Papers 1393, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Giacomo Calzolari & Alessandro Pavan, 2003. "Monopoly with Resale," Working Papers 2003.20, Fondazione Eni Enrico Mattei.
- Calvo-Armengol, Antoni, 2003. "A decentralized market with trading links," Mathematical Social Sciences, Elsevier, vol. 45(1), pages 83-103, February.
- Zheng, Charles Zhoucheng, 2002.
"Optimal Auction with Resale,"
Staff General Research Papers
12664, Iowa State University, Department of Economics.
- Mihai Manea, 2011. "Bargaining in Stationary Networks," American Economic Review, American Economic Association, vol. 101(5), pages 2042-80, August.
- repec:rje:randje:v:37:y:2006:2:p:362-375 is not listed on IDEAS
- Parkes, David C. & Tennenholtz, Moshe, 2009. "Special Section of Games and Economic Behavior dedicated to the 8th ACM Conference on Electronic Commerce," Games and Economic Behavior, Elsevier, vol. 67(1), pages 1-1, September.
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