Dynamic multilateral markets

Dynamic multilateral markets

We study dynamic multilateral markets, in which players’ payoffs result from coalitional bargaining. In this setting, we establish payoff uniqueness of the stationary equilibria when players exhibit some degree of impatience. We focus on market games with different player types, and derive under mild conditions an explicit formula for each type’s equilibrium payoff as market frictions vanish. T...

Dynamic Multilateral Markets Proof of Theorem 1

Transmission loss allocation in bilateral or multilateral transaction-based markets

In this paper, the problem of transmission loss allocation has been studied and a new method for loss allocation in transaction-based markets has been proposed. To further this end, first transmission line loss equations were used with respect to bus injected currents. The share of each bus from the mentioned transmission line losses was determined. Then, this method was applied to the total ne...

Competitive prices of homogeneous goods in multilateral markets

We introduce a subclass of multi-sided assignment games that embodies markets with different types of firms that produce different types of homogeneous goods. These markets generalize bilateral Böhm-Bawerk horse markets. We describe the geometric and algebraic structure of the core, which is always nonempty. We also characterize the extreme points of the core and show that they are marginal wor...

Testing Neoclassical Competitive Theory in Multilateral Decentralized Markets

Walrasian tâtonnement has been a fundamental assumption in economics ever since Walras’ general equilibrium theory was introduced in 1874. Nearly a century after its introduction, Vernon Smith relaxed the Walrasian tâtonnement assumption by showing that neoclassical competitive market theory explains the equilibrating forces in “double-auction” markets. I make a next step in this evolution by e...