Lauermann, Stephan (2011): Dynamic matching and bargaining games: A general approach.
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This paper presents a new characterization result for competitive allocations in quasilinear economies. This result is informed by the analysis of non-cooperative dynamic search and bargaining games. Such games provide models of decentralized markets with trading frictions. A central objective of this literature is to investigate how equilibrium outcomes depend on the level of the frictions. In particular, does the trading outcome become Walrasian when frictions become small? Existing specifications of such games provide divergent answers. The characterization result is used to investigate what causes these differences and to generalize insights from the analysis of specific search and bargaining games.
|Item Type:||MPRA Paper|
|Original Title:||Dynamic matching and bargaining games: A general approach|
|Keywords:||Dynamic Matching and Bargaining, Decentralized Markets, Non-cooperative Foundations of Competitive Equilibrium, Search Theory|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
|Depositing User:||Stephan Lauermann|
|Date Deposited:||20. Jun 2011 23:19|
|Last Modified:||14. Feb 2013 17:00|
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