Price variation in a bipartite exchange network

Ronen Gradwohl

doi:10.1007/978-3-540-79309-0_11

Price variation in a bipartite exchange network

Ronen Gradwohl^*

^*Corresponding author for this work

Managerial Economics, Decision Sciences and Operations

Research output: Chapter in Book/Report/Conference proceeding › Conference 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 language	English (US)
Title of host publication	Algorithmic Game Theory - First International Symposium, SAGT 2008, Proceedings
Pages	109-120
Number of pages	12
DOIs	https://doi.org/10.1007/978-3-540-79309-0_11
State	Published - 2008
Event	1st International Symposium on Algorithmic Game Theory, SAGT 2008 - Paderborn, Germany Duration: Apr 30 2008 → May 2 2008

Publication series

Name	Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume	4997 LNCS
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Other

Other	1st International Symposium on Algorithmic Game Theory, SAGT 2008
Country/Territory	Germany
City	Paderborn
Period	4/30/08 → 5/2/08

ASJC Scopus subject areas

Theoretical Computer Science
General Computer Science

Access to Document

10.1007/978-3-540-79309-0_11

Cite this

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title = "Price variation in a bipartite exchange network",

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.",

author = "Ronen Gradwohl",

year = "2008",

doi = "10.1007/978-3-540-79309-0_11",

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Gradwohl, R 2008, Price variation in a bipartite exchange network. in Algorithmic Game Theory - First International Symposium, SAGT 2008, Proceedings. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 4997 LNCS, pp. 109-120, 1st International Symposium on Algorithmic Game Theory, SAGT 2008, Paderborn, Germany, 4/30/08. https://doi.org/10.1007/978-3-540-79309-0_11

Price variation in a bipartite exchange network. / Gradwohl, Ronen.
Algorithmic Game Theory - First International Symposium, SAGT 2008, Proceedings. 2008. p. 109-120 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 4997 LNCS).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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AB - 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.

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Price variation in a bipartite exchange network

Abstract

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