We examine the rate of convergence to efficiency in the buyer?s bid double auction for sequences of markets in which the number m of buyers can be arbitrarly larger than the number n of sellers. This rate is shown to be O(n/m2) when m, n are such that m*_ for a constant _ 1. This is consistent...

In three chapters I study the formation of social networks, and the impact the structures that arise may have in various economic settings. First, I develop a model of social network formation with heterogeneous agents and incomplete information. The model predicts an equilibrium in which agents...

We show that the entry of a second firm in a horizontally differentiated market (ala Hotelling) may harm consumers as prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly which is located at the center of the market. When a...