23 octobre 2012, 11h00–12h30
Toulouse
Salle MS 001
Economic Theory Seminar
Résumé
In many markets, ranging from markets for agricultural goods in developing countries to financial markets, goods flow via a sequence of intermediated trade before reaching final customers, information is asymmetric, and trading opportunities are incomplete. We study a dynamic model of bargaining in networks with asymmetric information that captures these three features. We show that the equilibrium price dynamic is non-monotonic and that traders who intermediate the object arise endoge- nously and attain a profit. This profit depends on their network location. Inefficiencies may arise in equilibrium, but as the time horizon goes to infinity and traders become perfectly patients, equilibrium becomes ex-post efficient.
Mots-clés
Asymmetric Information; Bargaining; Bilateral Trading; Networks;