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Trust on one market, robustness on the other: understanding the coexistence of decentralized and centralized markets

Author

Listed:
  • Laura Hernandez

    (LPTM - UMR 8089 - Laboratoire de Physique Théorique et Modélisation - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Annick Vignes

    (CAMS - Centre d'Analyse et de Mathématique sociales - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Stéphanie Saba

    (CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas)

Abstract

Centralized markets are often considered as being more efficient than bilateral exchanges, based on the fact that information is uniformly spread among all the agents. However, the influence of trust on the outcome of decentralized markets has been underlined by many authors. We present an empirical study of the distinctive Boulogne- sur-Mer sh market (where both buyers and sellers can choose to trade by either bidding or bargaining), focused on the interactions among agents. The approach we adopt derives from the studies of mutualistic ecosystems, where the agents are of two different types (like in plants - pollinators networks) and the interactions only take place between agents of different kind, bringing naturally a benefit for both. In our context, where the two kinds of agents are buyers and sellers, our study shows that their interactions, not only bring the economic benefits for the directly involved agents, but they also contribute to the stability of the market. Our results help to under- stand the surprising coexistence of the two forms of markets in the Boulogne sur Mer sh-market.

Suggested Citation

  • Laura Hernandez & Annick Vignes & Stéphanie Saba, 2017. "Trust on one market, robustness on the other: understanding the coexistence of decentralized and centralized markets," Working Papers hal-02007316, HAL.
    • Handle: RePEc:hal:wpaper:hal-02007316
    Note: View the original document on HAL open archive server: https://hal.science/hal-02007316
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