We deal with the problem of providing incentives for the implementation of constrained optimal outcomes in a two-period economy with incomplete markets. Allowing both for price observation, price-manipulation and a minimal amount of coordination enables to recover (second-best) efficiency at equilibrium, therefore to do better than perfect competition. To make this point, we construct a feasibl...

Many markets involve two groups of agents who interact via “platforms,” where one group’s benefit from joining a platform depends on the size of the other group that joins the platform. I present three models of such markets: a monopoly platform; a model of competing platforms where agents join a single platform; and a model of “competitive bottlenecks” where one group joins all platforms. The ...

‎financial market modeling and prediction is a difficult problem and drastic changes of the price causes nonlinear dynamic that makes the price prediction one of the most challenging tasks for economists‎. ‎since markets always have been interesting for traders‎, ‎many traders with various beliefs are highly active in a market‎. ‎the competition among two agents of traders‎, ‎namely trend follo...

We analyze a two-stage game where capacity constrained electricity generators first choose how much capacity they make available and then compete in a uniform price auction. We study how capacity withholding can be used strategically to enforce market power and how uniform auctions in the price game change the results of capacity constrained competition models. Our main finding is that the unif...

In the past decade the market paradigm has been adopted as the prima facie candidate for achieving coordination between self-interested, autonomous software agents. In this context, the area of mechanism design has been increasingly applied in order to achieve desired global outcomes based on local interactions, by developing rules of interaction that align the individual needs with social desi...

Between 1950 and 1980, the physician fee component of the Consumer Price Index (CPI) rose 488 percent. In contrast, an index of physician fees adjusted for 1) overall inflation, and 2) the declining proportion which is paid out-of-pocket by the patient, declined over the same 30-year period. This last observation, pointing to the erosion of the market, is important for structuring price competi...

There is an increasing trend towards global financial consolidation. Empirical evidence has shown that though consolidation can promote market efficiency, it can also increase systemic risk. Therefore, understanding the effects of company mergers on the financial markets is an increasingly pertinent issue. This paper presents a multi-market agent-based model of endogenous merger formation, cons...