Price discrimination is the practice of charging different consumers different prices for the same good, where the price difference cannot be accounted for by differences in cost. The ability to price discriminate enables a seller to charge buyers prices that more closely approximate their willingness-to-pay for the item. By price discriminating, sellers are able not only to maximize their own ...

We endogenize circulation of currencies and price formation in a decentralized monetary trading environment with two countries and two currencies. In equilibrium sellers of homogenous goods may post prices in the national or also in the foreign currency, given unobservable buyers’ valuations. We prove that, under different monetary regimes, the absence of well integrated international goods mar...

The business achievement among consumers via e-commerce is getting more and more importance at the present time. In this paper, we propose to make use of fuzzy logic with the aim to improve the search and cataloguing of goods and services in Consumer-to-Consumer electronic commerce (E-commerce) portals (e.g. ebay). These portals are the media through most of the electronic transactions among co...

Assignment Exchanges Paul Milgrom September 6, 2008 Abstract. We analyze assignment exchanges –auction and exchange mechanisms which are tight simplifications of direct Walrasian exchange mechanisms. These simplifications are distinguished by their use of “assignment messages,” which parameterize certain substitutable preferences. The “basic” assignment exchanges respect integer constraints, ge...

Numerous studies of the interaction between buyers and sellers in a market can be found in the rapidly developing research literature on electronic commerce (EC). This interaction usually takes the form of a transaction process, in which goods or services are exchanged between customers and suppliers. (See Figure 1.) This process may involve none, one or several intermediaries or middlemen, dep...

This paper studies markets plagued with asymmetric information on the quality of the goods traded. In Akerlof’s setting, sellers are better informed than buyers. In contrast, we examine cases where buyers are better informed than sellers. This creates an inverse adverse-selection problem: The market tends to disappear from the bottom rather than from the top. In contrast to the traditional mode...

We describe an agent-based microeconomic simulation of a local market. Consumers and Sellers are represented as agents in the Aglets framework. Consumers follow a Cobb-Douglas utility function, and they choose the seller that best matches their desired combination of goods and services. Different sellers provide different combinations of goods and services. The amount of money available to cons...

Despite their potential to significantly reduce transaction costs for both buyers and sellers, e-marketplaces have struggled. Recent literature has examined the value propositions of e-marketplaces and proposed conceptual frameworks for their analysis. In this research, we move beyond conceptual analysis by developing a gametheoretic model of return-on-investment (ROI)–driven e-marketplace part...

The widespread use of the Internet has led to the emergence of numerous information intermediaries that bring buyers and sellers together and leverage their knowledge of the marketplace to provide value added services. Infomediaries offer matching services that facilitate establishment of a buyer-seller agreement, and value-added services that either provide a stand-alone benefit or enhance ben...

The market is a place where supply and demand meet. Buying selling can be done without the presence of goods (on stock exchanges other markets), even direct contact between buyers sellers. according to catalog, by phone, fax, internet, etc. Therefore, defined as constant organized form bringing into with for services. At same time, mechanism that regulates relations sellers in conditions which ...