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Bargaining or Price Posting?

Author

Listed:
  • Camera, G.
  • Delacroix, A.

Abstract

We study the endogenous determination of the trading mechanism in a search economy with a continuum of homogenous sellers and heterogeneous buyers.

Suggested Citation

  • Camera, G. & Delacroix, A., 2001. "Bargaining or Price Posting?," Purdue University Economics Working Papers 1147, Purdue University, Department of Economics.
    • Handle: RePEc:pur:prukra:1147
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    File URL: https://business.purdue.edu/research/Working-papers-series/Year-2001/G.CameraII8-2001.pdf
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    References listed on IDEAS

    as
    1. Gabriele Camera & Johannes Winkler, 2000. "Currency Substitution and The Law of One Price," Econometric Society World Congress 2000 Contributed Papers 0513, Econometric Society.
    2. Arnold, Michael A & Lippman, Steven A, 1998. "Posted Prices versus Bargaining in Markets with Asymmetric Information," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 450-457, July.
    3. McAfee, R Preston, 1993. "Mechanism Design by Competing Sellers," Econometrica, Econometric Society, vol. 61(6), pages 1281-1312, November.
    4. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    5. Ellingsen, Tore & Rosén, Åsa, 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," SSE/EFI Working Paper Series in Economics and Finance 185, Stockholm School of Economics.
    6. Adachi, Mitsutoshi M., 1999. "On the choice of pricing policies: Ex ante commitment and prisoners' dilemma," European Economic Review, Elsevier, vol. 43(9), pages 1647-1663, October.
    7. Daron Acemoglu & Robert Shimer, 2000. "Wage and Technology Dispersion," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 585-607.
    8. Bester, Helmut, 1994. "Price commitment in search markets," Journal of Economic Behavior & Organization, Elsevier, vol. 25(1), pages 109-120, September.
    9. Drew Fudenberg & Jean Tirole, 1983. "Sequential Bargaining with Incomplete Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(2), pages 221-247.
    10. John Riley & Richard Zeckhauser, 1983. "Optimal Selling Strategies: When to Haggle, When to Hold Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 267-289.
    11. Bester, Helmut, 1993. "Bargaining versus Price Competition in Markets with Quality Uncertainty," American Economic Review, American Economic Association, vol. 83(1), pages 278-288, March.
    12. Adrian Masters & Abhinay Muthoo, 2004. "Ex ante Price Commitment with Renegotation in a Dynamic Market Equilibrium," Discussion Papers 04-09, University at Albany, SUNY, Department of Economics.
    13. Trejos, Alberto & Wright, Randall, 1995. "Search, Bargaining, Money, and Prices," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 118-141, February.
    14. Moen, Espen R, 1997. "Competitive Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 385-411, April.
    15. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    16. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
    17. Wang, Ruqu, 1993. "Auctions versus Posted-Price Selling," American Economic Review, American Economic Association, vol. 83(4), pages 838-851, September.
    18. Kultti, Klaus, 1999. "Equivalence of Auctions and Posted Prices," Games and Economic Behavior, Elsevier, vol. 27(1), pages 106-113, April.
    19. Peters, Michael, 1991. "Ex Ante Price Offers in Matching Games Non-steady States," Econometrica, Econometric Society, vol. 59(5), pages 1425-1454, September.
    20. Lu, Xiaohua & McAfee, R. Preston, 1996. "The Evolutionary Stability of Auctions over Bargaining," Games and Economic Behavior, Elsevier, vol. 15(2), pages 228-254, August.
    21. Michael Peters, 1995. "Decentralized Markets and Endogenous Institutions," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 227-260, May.
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    Cited by:

    1. Yongmin Chen & Ruqu Wang, 2004. "Equilibrium Selling Mechanisms," Annals of Economics and Finance, Society for AEF, vol. 5(2), pages 335-355, November.
    2. Masui, Makoto, 2011. "Jobs with different wage determination mechanisms, social efficiency and unemployment," Journal of the Japanese and International Economies, Elsevier, vol. 25(1), pages 56-75, March.

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    More about this item

    Keywords

    PRICING ; INFORMATION ; TRADE;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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