Prices, delay, and the dynamics of trade

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Show simple item record Moreno, Diego Wooders, John 2009-06-12T10:18:37Z 2009-06-12T10:18:37Z 2002
dc.identifier.bibliographicCitation Journal of Economic Theory. 2002, vol. 104, nº 2, p. 304-339
dc.identifier.issn 0022-0531
dc.description.abstract We characterize the dynamics of trading patterns and market composition when trade is bilateral, finding a trading partner is costly, prices are determined by bargaining, and preferences are private information. We show that equilibrium is inefficient and exhibits delay as sellers price discriminate between buyers with different values. As frictions vanish, transaction prices are asymptotically competitive and the welfare loss of inefficient trading approaches zero, even though the trading patterns continue to be inefficient and delay persists.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.rights ©Elsevier
dc.subject.other decentralized markets
dc.subject.other asymmetric information
dc.subject.other trade dynamics
dc.subject.other matching
dc.subject.other bargaining
dc.subject.other delay
dc.title Prices, delay, and the dynamics of trade
dc.type article PeerReviewed
dc.description.status Publicado
dc.subject.eciencia Economía
dc.identifier.doi 10.1006/jeth.2001.2822
dc.rights.accessRights openAccess
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