Gas thin markets:insights from bargaining and networks models
Several results from bargaining and networks microeconomic literature are presented and their main insights and applications to bilateral market power and price formation in gas thin markets are discussed. Bargaining models encompass the bilateral Rubinstein negotiations, bargaining between a single seller and two buyer, both symmetric and heterogeneous and negotiations in bilateral oligopolies. Models of price formation both in fixed and in endogenously formed buyers-sellers networks are also discussed.
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