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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 …
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This paper compares the equilibrium outcomes in search markets with and without referrals. Although it seems clear that consumers would benefit from referrals, it is not at all clear whether firms would unilaterally provide information about competing offers since such information could...
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This article provides an equilibrium model of intermediation based on search theory. Intermediaries, like retailers …
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