EconPapers    
Economics at your fingertips  
 

Vertical syndication-proof competitive prices in multilateral assignment markets

Oriol Tejada and Mikel Álvarez-Mozos

Review of Economic Design, 2016, vol. 20, issue 4, No 2, 289-327

Abstract: Abstract We consider a market comprising a number of perfectly complementary and homogeneous commodities. We concentrate on the incentives for firms producing these commodities to merge and form a vertical syndicate. The main result establishes that the nucleolus of the associated market game corresponds to the unique vector of prices with the following properties: (i) they are vertical syndication-proof, (ii) they are competitive, (iii) they yield the average of the buyers- and the sellers-optimal allocations in bilateral markets, and (iv) they depend on the traders’ bargaining power but not on their identity. The proof uses an isomorphism between our class of market games and the entire class of bankruptcy games.

Keywords: Multilateral market; Syndicate; Cooperative game; Assignment market; Bankruptcy problem; Nucleolus (search for similar items in EconPapers)
JEL-codes: C71 D40 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10058-016-0193-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reecde:v:20:y:2016:i:4:d:10.1007_s10058-016-0193-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10058

DOI: 10.1007/s10058-016-0193-1

Access Statistics for this article

Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers

More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-05-21
Handle: RePEc:spr:reecde:v:20:y:2016:i:4:d:10.1007_s10058-016-0193-1