Publication: Prices, delay and the dynamics of trade
Loading...
Identifiers
Publication date
1999-05
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Impact
Export
Abstract
We characterize trading patterns and their dynamics in a market in which trade is bilateral, finding a trading partner is costly, prices are determined by bargaining, and preferences are private information. We also determine how the trading pattern depends on the market composition. Our analysis reveals that market equilibria may be inefficient and may exhibit delay. As the market becomes frictionless the welfare loss due to inefficiency vanishes; delay
persists, however, and in this respect frictionless markets are not competitive.
Description
Keywords
Trade dynamics, Matching, Bargaining, Delay, Asymmetric information, Decentralized trade