Fleiner, Tamás; Jagadeesan, Ravi; Jankó, Zsuzsanna; … - 2020
We show how frictions and continuous transfers jointly affect equilibria in a model of matching in trading networks …. Our model incorporates distortionary frictions such as transaction taxes, bargaining costs, and incomplete markets. When … stability property called trail stabity. In the presence of frictions, competitive equilibria might be neither stable nor …