Working Paper No. 14-15 Meeting Technologies and Optimal Trading Mechanisms in Competitive Search Markets
نویسندگان
چکیده
In a market in which sellers compete by posting mechanisms, we allow for a general meeting technology and show that its properties crucially affect the mechanism that sellers select in equilibrium. In general, it is optimal for sellers to post an auction without a reserve price but with a fee, paid by all buyers who meet with the seller. However, we define a novel condition on meeting technologies, which we call invariance, and show that meeting fees are equal to zero if and only if this condition is satisfied. Finally, we discuss how invariance is related to other properties of meeting technologies identified in the literature. JEL classification: C78, D44, D83.
منابع مشابه
Meeting technologies and optimal trading mechanisms in competitive search markets
Meeting Technologies and Optimal Trading Mechanisms in Competitive Search Markets In a market in which sellers compete by posting mechanisms, we study how the properties of the meeting technology affect the mechanism that sellers select. In general, sellers have incentive to use mechanisms that are socially efficient. In our environment, sellers achieve this by posting an auction with a reserve...
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