Prices, delay, and the dynamics of trade Moreno, Diego; Wooders, John

User activity

Share to:
View the summary of this work
Authors
Moreno, Diego ; Wooders, John
Appears In
Journal of Economic Theory
Subjects
Equilibrium (Economics) -- Evaluation; Terms of trade; Economics
Audience
Academic
Summary
We characterize the dynamics of trading patterns and market composition when trade is bilateral, finding a trading pat trier is costly, prices arc determined by bargaining, and preferences are private information. We show that equilibrium is inefficient and exhibits delay as sellers price discriminate between buyers with different values. As frictions vanish, transaction prices are asymptotically competitive and the welfare loss of inefficient trading approaches zero. even though the trading patterns continue to be inefficient and delay persists.
Bookmark
http://trove.nla.gov.au/work/295354
Work ID
295354

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this work

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this work

Add a comment


Show comments and reviews from Amazon users