Bargaining and markets

Marriage Markets and Bargaining Marriage Markets and Bargaining Between Spouses

Bargaining and Markets

Bargaining in dynamic markets

Article history: Received 15 June 2015 Available online 21 March 2017 JEL classification: C78 D40

Valuation in Dynamic Bargaining Markets

We study the impact on asset prices of illiquidity associated with search and bargaining in an economy in which agents can trade only when they find each other. Marketmakers’ prices are higher and bidask spreads are lower if investors can find each other more easily. Prices become Walrasian as investors’ or marketmakers’ search intensities get large. Endogenizing search intensities yields natur...

Bargaining and Leverage in Option Demand Markets

There is keen interest in estimating empirical models of economic behavior in order to derive predictions that can be useful for strategic analysis and antitrust. The economic theories that form the foundation for empirical estimation often assume that agents are rational and act with foresight. In many models, fully rational agents not only calculate the immediate impact of their economic deci...