THE GENERAL EQUILIBRIUM STRUCTURE OF BARGAINING MODELS AND MARKET EXPERIMENTS by
نویسندگان
چکیده
We map induced supply and demand environments to equivalent general equilibrium economies. This general equilibrium structure facilitates reinterpretation of bargaining models and market experiments, typically formulated as partial equilibrium environments, in the framework of implementation in general equilibrium economies. We reinterpret results of and relationships among several bargaining models and market experiments to illustrate advantages of the delineation between environment, institution, and behavior that our formulation provides. This leads to a clearer understanding of those environments in which various forms of boundedly rational behavior will achieve e cient outcomes under several alternative exchange mechanisms. GENERAL EQUILIBRIUM STRUCTURE OF BARGAINING 1
منابع مشابه
On-the-Job Search, MinimumWages, and Labor Market Outcomes in an Equilibrium Bargaining Framework1
We look at the impact of a binding minimum wage on labor market outcomes and welfare distributions in both partial and general equilibrium models of matching and bargaining a currentlyemployed individual can meet other potential employers (on-the-job search). In analyzing and estimating the model, we use two different specifications of the Nash bargaining problem. In one, firms engage in a Bert...
متن کاملMarriage Market Equilibrium and Bargaining in Marriage*
This paper examines marriage market equilibrium when allocation is determined by bargaining in marriage rather than binding agreements between prospective spouses. We view sorting in the marriage market and allocation in marriage as a two-stage game in which prospective spouses, when they meet in the marriage market, foresee the allocation that would emerge from bargaining in marriage, but are ...
متن کاملCompetitive Pricing and Efficiency in Search Equilibrium
We consolidate and generalize some results on price determination and ef®ciency in search equilibrium. Extending models by Rubinstein and Wolinsky and by Gale, heterogeneous buyers and sellers meet according to a general matching technology and prices are determined by a general bargaining condition. When the discount rate r and search costs converge to 0, we show that prices in all exchanges a...
متن کاملMatching and bargaining models of markets: approximating small markets by large markets
We show that the equilibrium of a matching and bargaining model of a market in which there is a ®nite number of agents at each date need not be near the equilibrium of a market with a continuum of agents, although matching probabilities are the same in both markets. Holding the matching process ®xed, as the ®nite market becomes large its equilibrium approaches the equilibrium of its continuum l...
متن کاملModeling the foreign exchange market pressure in the monetary policy of the Iranian economy with a Dynamic Stochastic General Equilibrium approach
Exchange rate fluctuations and the degree of central bank intervention in the foreign exchange market through foreign reserves simultaneously determine the foreign exchange market pressure. This concept is considered as one of the important indicators related to the behavior of monetary authorities in policy-making, which affects other economic variables through foreign trade channels and infla...
متن کامل