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.
Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach / Camera, Gabriele; Kim, Jaehong. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 118:2(2013), pp. 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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