Buyer’s equilibrium with capacity constraints and restricted mobility: A recursive approach

Gabriele Camera and Jaehong Kim

Economics Letters, 2013, vol. 118, issue 2, 321-323

Abstract: We study a decentralized trading model as in Peters (1984a), where heterogeneous market participants face a trade-off between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.

Keywords: Nash equilibrium; Recursive methods; Existence; Heterogeneity; Matching (search for similar items in EconPapers)
JEL-codes: C70 D39 D49 E39 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Working Paper: Buyer's Equilibrium with Capacity Constraints and Restricted Mobility: a Recursive Approach (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:2:p:321-323

DOI: 10.1016/j.econlet.2012.11.012

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