More on Middlemen: Equilibrium Entry and Efficiency in Intermediated Markets
نویسندگان
چکیده
منابع مشابه
More on Middlemen: Equilibrium Entry and Efficiency in Intermediated Markets
This paper generalizes Rubinstein and Wolinsky’s model of middlemen (intermediation) by incorporating production and search costs, plus more general matching and bargaining. This allows us to study many new issues, including entry, efficiency and dynamics. In the benchmark model, equilibrium exists uniquely, and involves production and intermediation for some parameters but not others. Sometime...
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This paper shows how including divisibility of goods and productive heterogeneity leads to the emergence of middlemen in an equilibrium search environment. In the baseline model, middlemen are welfare reducing and their number increases as market frictions are reduced. When the model is extended to allow for time taken in production and increasing returns-to-scale in the market meeting technolo...
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We consider a model of intermediated trade for a financial asset. Agents' valuation for the asset includes both a private and a common value component. A third party posts a price at which trade can occur, and a buyer and seller simultaneously decide whether to accept or reject the trade. We show that trade can be ex post inefficient, in the sense that a high value seller sells the good to a lo...
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Middlemen in Limit-Order Markets A limit-order market enables an early seller to trade with a late buyer by leaving a price quote. But, public news in the interarrival period creates adverse selection for the seller and therefore hampers trade. High-frequency traders/machines (HFT) might restore trade by bringing the capacity to quickly update quotes on news. A theoretical model shows that HFT ...
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We consider a model of intermediated trade for a financial asset. Agents' valuation for the asset is interdependent, which can arise from a private and a common component. A third party posts a price at which trade can occur, and a buyer and seller simultaneously decide whether to accept or reject the trade. We show that trade can be ex post inefficient, in the sense that a high private value s...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2014
ISSN: 1556-5068
DOI: 10.2139/ssrn.2537534