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dc.contributor.authorSiedlarek, Jan-Peteren_US
dc.date.accessioned2012-07-05en_US
dc.date.accessioned2012-07-13T14:52:25Z-
dc.date.available2012-07-13T14:52:25Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/59700-
dc.description.abstractThis paper studies bargaining and exchange in a networked market with intermediation. Possibilities to trade are restricted through a network of existing relationships and traders bargain over the division of available gains from trade along different feasible routes. Using a stochastic model of bargaining, I characterize stationary equilibrium payoffs as the fixed point of a set of intuitive value function equations and study efficiency and the relationship between network structure and payoffs. In equilibrium, trade is never unduly delayed but it may take place too early and in states where delay would be efficient. The inefficiency arises from a hold-up threat and the inability of bargaining parties credibly to commit to a split in a future period. The model also shows how with competing trade routes as trade frictions go to zero agents that are not essential to a trade opportunity receive a payoff of zero.en_US
dc.language.isoengen_US
dc.publisherFondazione Eni Enrico Mattei Milanoen_US
dc.relation.ispartofseriesNota di lavoro, Fondazione Eni Enrico Mattei: Climate Change and Sustainable Development 42.2012en_US
dc.subject.jelC73en_US
dc.subject.jelC78en_US
dc.subject.jelL14en_US
dc.subject.ddc330en_US
dc.subject.keywordStochastic Gamesen_US
dc.subject.keywordbargainingen_US
dc.subject.keywordRandom Matchingen_US
dc.subject.keywordMiddlemenen_US
dc.subject.keywordNetworken_US
dc.titleIntermediation in networksen_US
dc.typeWorking Paperen_US
dc.identifier.ppn718933761en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:FEEM Working Papers, Fondazione Eni Enrico Mattei

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