A model of merchants
نویسنده
چکیده
I propose a simple model of merchants who are specialized in buying and selling a homogenous good. Facing the same frictions as in the buyer-seller direct trades, merchants can make profits with an ability to buy and sell many units of the good. They set the price to compete in the market and provide buyers with a strong likelihood of obtaining the good. This paper establishes a turnover equilibrium where some agents choose to become merchants endogenously. An interesting multiplicity can emerge.
منابع مشابه
Evolutionary Learning of the Optimal Pricing Strategy in an Artificial Payment Card Market
This paper introduces an artificial payment card market in which we model the interactions between consumers, merchants and competing card issuers with the aim of determining the optimal pricing structure for card issuers. We allow card issuers to charge consumers and merchants with fixed fees, provide net benefits from card usage and engage in marketing activities. The demand by consumers and ...
متن کاملWhy Do Merchants Accept Credit Cards?
In this article, we investigate why merchants accept credit cards for payment despite the relatively high cost of processing these types of transactions. A two-period model is constructed to determine under what conditions a credit card equilibrium would exist. The results of the model indicate that when the cost of funds is not too high and when the merchant’s profit margin is sufficiently hig...
متن کاملTrade Without Law: Private-Order Institutions in Mexican California
Trade prospered in absence of law in California during the 1830s and 1840s. Merchants, through intermerchant trade and the partnerships they organized to buy goods abroad, played a central role in trade. This article examines the privateorder institution that facilitated intermerchant trade. The hypothesis is that a particular type of private-order institution, a coalition, governed agency rela...
متن کاملA Dynamic Model of Search and Intermediation
This paper develops a dynamic model of an economy with search frictions in which homogeneous agents choose between specializing as producers or as merchants, and can change occupation at any time. Merchants operate alongside a decentralized search market and provide immediacy in trade in return for a price. Agents who know the location of a merchant have the option of paying the merchant’s pric...
متن کاملSearch and Intermediation: Toward a Model of the Merchant Trader
This paper develops a dynamic model of an economy in which homogeneous agents choose between specializing as producers or as merchants, and can change occupation at any time. Merchants operate alongside a decentralized search market and provide immediacy in exchange in return for a price. We characterize equilibria in symmetric Markov strategies, and derive conditions under which merchants and ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- J. Economic Theory
دوره 145 شماره
صفحات -
تاریخ انتشار 2010