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The purpose of this paper is to explore strategic incentives to use trade networks rather than markets and to shed … of networks. We investigate the issues by mainly focusing on the role of matching in a trade network. The existing … conditions under which agents prefer to trade on networks rather than in markets. -- Trade networks ; Repeated games ; Matching …
Persistent link: https://www.econbiz.de/10003898826
The purpose of this paper is to explore strategic incentives to use trade networks rather than markets and shed light … trading system. The study states conditions under which agents prefer to trade on networks rather than in markets. -- Repeated … trade ; Moral hazard ; Matching ; Transaction costs ; Networks ; Institutions …
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We study an economy where intermediaries facilitate exchange between a supplier and consumers. The set of feasible transactions is characterized by a network and an efficient auction protocol sets prices. We examine trading networks compatible with a free-entry equilibrium. There is under-entry...
Persistent link: https://www.econbiz.de/10012900216
We formulate the merchant trading of energy in a network of storage and transport assets as a Markov decision process with uncertain energy prices, generalizing known models. Because of the intractability of our model, we develop heuristics and both lower and dual (upper) bounds on the optimal...
Persistent link: https://www.econbiz.de/10012937815
I develop a theory of intermediation in a market where agents meet bilaterally to trade and buyers cannot commit to … that yield informed agents either more effective opportunities to trade or the ability to extract more surplus in trades. …
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