Date: 2017
Type: Article
Trading in networks : theory and experiments
Journal of the European economic association, 2017, Vol. 15, No. 4, pp. 784-817
CHOI, Syngjoo, GALEOTTI, Andrea, GOYAL, Sanjeev, Trading in networks : theory and experiments, Journal of the European economic association, 2017, Vol. 15, No. 4, pp. 784-817
- https://hdl.handle.net/1814/59585
Retrieved from Cadmus, EUI Research Repository
We propose a model of posted prices in networks. The model maps traditional concepts of market power, competition, and double marginalization into networks, allowing for the study of pricing in complex structures of intermediation, such as supply chains, transportation and communication networks, and financial brokerage. We provide a complete characterization of equilibrium prices. Our experiments complement our theoretical work and point to node criticality as an organizing principle for understanding pricing, efficiency, and the division of surplus in networked markets.
Additional information:
Published: 14 February 2017
Cadmus permanent link: https://hdl.handle.net/1814/59585
Full-text via DOI: 10.1093/jeea/jvw016
ISSN: 1542-4766; 1542-4774
Publisher: Oxford University Press
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