Price variation in a bipartite exchange network

Ronen Gradwohl*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We analyze the variation of prices in a model of an exchange market introduced by Kakade et al. [11], in which buyers and sellers are represented by vertices of a bipartite graph and trade is allowed only between neighbors. In this model the graph is generated probabilistically, and each buyer is connected via preferential attachment to v sellers. We show that even though the tail of the degree distribution of the sellers gets heavier as v increases, the prices at equilibrium decrease exponentially with v. This strengthens the intuition that as the number of vendors available to buyers increases, the prices of goods decrease.

Original languageEnglish (US)
Title of host publicationAlgorithmic Game Theory - First International Symposium, SAGT 2008, Proceedings
Pages109-120
Number of pages12
DOIs
StatePublished - Jun 5 2008
Event1st International Symposium on Algorithmic Game Theory, SAGT 2008 - Paderborn, Germany
Duration: Apr 30 2008May 2 2008

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4997 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Other

Other1st International Symposium on Algorithmic Game Theory, SAGT 2008
CountryGermany
CityPaderborn
Period4/30/085/2/08

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science(all)

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