analyses in various ways, we ask when intermediation emerges and study its efficiency. In one version of the framework, meant … view that intermediation in financial markets is more prone to instability than in goods markets. …

This paper generalizes Rubinstein and Wolinsky's model of middlemen (intermediation) by incorporating production and … and dynamics. In the benchmark model, equilibrium exists uniquely, and involves production and intermediation for some … parameters but not others. Sometimes intermediation is essential: the market operates iff middlemen are active. If bargaining …