Trade through endogenous intermediaries

Trade through Endogenous Intermediaries∗

We propose an intermediation core for an economy that is explicit in how traders organize themselves into trade cooperatives (intermediaries) and how trade between them gets carried out. The intermediation core allocations are closely related to equilibrium allocations of a non-cooperative intermediation game in Townsend (1983). We show that the intermediation core contains all subgame-perfect ...

Peddling Influence through Intermediaries

Design Trade-offs for Electronic Intermediaries

Peddling Influence through Intermediaries: Propaganda∗

Information may be transmitted directly from a sender to a receiver, or indirectly through intermediaries. How do intermediaries affect the reporting truthfulness of an informed sender? When does he prefer using intermediaries? In this model, an objective sender or intermediary passes on information truthfully, while a biased one wants to push a particular agenda but also has reputational conce...

Endogenous Trade Participation with Incomplete Exchange Rate Pass-Through

This paper investigates the implications of endogenous trade participation for international business cycles, trade flow dynamics and exchange rate pass-through when price adjustments are staggered across firms. I develop a two-country dynamic stochastic general equilibrium model wherein firms make state-dependent decisions on entry and exit in the export market and the frequency of price adjus...