Siedlarek, Jan-Peter - Fondazione ENI Enrico Mattei (FEEM) - 2012
This paper studies bargaining and exchange in a networked market with intermediation. Possibilities to trade are … different feasible routes. Using a stochastic model of bargaining, I characterize stationary equilibrium payoffs as the fixed … efficient. The inefficiency arises from a hold-up threat and the inability of bargaining parties credibly to commit to a split …