Document Type
Article
Publication Date
2012
Abstract
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.
Recommended Citation
Camera, G. and Kim, J. (2012). Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach. ESI Working Paper 12-28. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/61
Comments
Working Paper 12-28