Lagos, Ricardo (contributor); … - 2006
is below
average, then ∂a
i
/∂α < 0 and ∂a
i
/∂β < 0.Asα or β goes to infinity, U
i
(a) → u
i
(a),andthe
optimal … related work.
4
Also related is the work of Spulber (1996), who considers a search environment where middlemen intermediate … dealership, while
we model a market with many small dealers who compete with each other for order flow.
5
2 The environment
Time …