Searching and bargaining with middlemen

Thanh Nguyen, Vijay G. Subramanian, Randall Berry

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

1 Scopus citations

Abstract

We study decentralized markets which include middlemen, producers and consumers connected via a trading network. We develop a model for trade in such settings based on non-cooperative bargaining with search frictions. Our goal is to investigate how the structure of the trading network and the role of middlemen influence the market's efficiency and fairness. To this end, we introduce the concept of limit stationary equilibrium which characterizes the trading patterns that emerge in a general trading network with a large population of agents. We use this concept to analyze how competition among middlemen is influenced by the network structure, how endogenous delay emerges in trade and how surplus is shared between producers and consumers.

Original languageEnglish (US)
Title of host publication2013 51st Annual Allerton Conference on Communication, Control, and Computing, Allerton 2013
PublisherIEEE Computer Society
Pages397
Number of pages1
ISBN (Print)9781479934096
DOIs
StatePublished - 2013
Event51st Annual Allerton Conference on Communication, Control, and Computing, Allerton 2013 - Monticello, IL, United States
Duration: Oct 2 2013Oct 4 2013

Publication series

Name2013 51st Annual Allerton Conference on Communication, Control, and Computing, Allerton 2013

Other

Other51st Annual Allerton Conference on Communication, Control, and Computing, Allerton 2013
CountryUnited States
CityMonticello, IL
Period10/2/1310/4/13

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Control and Systems Engineering

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