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This paper studies a decentralized, dynamic matching and bargaining market: buyers and sellers are matched into pairs … the fact that sellers have all the bargaining power we show that they set competitive prices in the limit when frictions … become small. Previous literature has restricted the sellers' bargaining power. We dispense with this restriction and show …
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offer is made right before the train departure. -- Natural field experiment ; bargaining ; focal point ; equal split ; agent …. The bargaining behavior resembles the Ultimatum game to the extent that proposers request a fixed price for a shared ride … positions of the bargaining parties are hardly symmetric and the formation of the full group is not guaranteed. Using a simple …
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We present a dynamic over-the-counter model of the fed funds market, and use it to study the determination of the fed funds rate, the volume of loans traded, and the intraday evolution of the distribution of reserve balances across banks. We also investigate the implications of changes in the...
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Transaction costs are usually thought to be a major source of inefficiency because they do not allow efficient trades to take place. One might think that lowering transaction costs is always welfare-improving. This paper argues that, in contrast to conventional wisdom, it may be beneficial to...
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policy. -- bargaining experiment ; outside option ; search …This experimental study investigates two bargaining games with twosided incomplete information between a seller and a … option to buy via search or return to bargaining. Here many buyers choose a bargaining agreement when a search outcome is …
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