We study a decentralized trading model as in Peters (1984a), where heterogeneous market participants face a trade-off between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.
Camera, G., Kim, J. (2013). Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach. ECONOMICS LETTERS, 118(2), 321-323 [10.1016/j.econlet.2012.11.012].
Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach
Camera, Gabriele
;
2013
Abstract
We study a decentralized trading model as in Peters (1984a), where heterogeneous market participants face a trade-off between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.File in questo prodotto:
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