Buyer's Equilibrium with Capacity Constraints and Restricted Mobility: a Recursive Approach

We study a decentralized trading model as in Peters (1984), where heterogeneous market participants face a trade-o between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.

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Year of publication:	2012
Authors:	Camera, Gabriele ; Kim, Jaehong
Institutions:	Economic Science Institute (ESI), Argyros School of Business and Economics
Subject:	Nash equilibrium \| recursive methods \| existence \| heterogeneity \| matching

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	C70 - Game Theory and Bargaining Theory. General ; D39 - Distribution. Other ; D49 - Market Structure and Pricing. Other ; E39 - Prices, Business Fluctuations, and Cycles. Other
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010817426