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In the static directed search model, sellers and buyers play a game where sellers post prices, buyers observe the posted prices and approach sellers, and transactions occur between sellers and one of the buyers who approaches them. Even though there are gains to trade, sellers with no...
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We investigate a partially directed search market where buyers search for sellers and then final prices are determined by ultimatum game bargaining. In the search stage of this game, sellers post intervals of possible surplus splits to attract buyers and then buyers approach one seller from whom...
Persistent link: https://www.econbiz.de/10012930572