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

Authors

Gabriele Camera, Chapman UniversityFollow
Jaehong Kim, Purdue UniversityFollow

Document Type

Article

Publication Date

2-2013

Abstract

We study a decentralized trading model as in Peters (1984), where heterogeneous market participants face a trade-off 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.

Comments

NOTICE: this is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, volume 118 (2013). DOI: 10.1016/j.econlet.2012.11.012

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Recommended Citation

Camera, G., and J. Kim (2013). Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach. Economics Letters 118, 321–323. doi: 10.1016/j.econlet.2012.11.012

Peer Reviewed

1

Copyright

Elsevier

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.