MEETINGS AND MECHANISMS

Xiaoming Cai, Pieter Gautier and Ronald Wolthoff

International Economic Review, 2023, vol. 64, issue 1, 155-185

Abstract: This article shows how meeting frictions affect equilibrium trading mechanisms and allocations in an environment where identical sellers post mechanisms to compete for buyers with ex ante heterogeneous private valuations. Multiple submarkets can emerge, each consisting of all sellers posting a particular mechanism and the buyers who visit those sellers. Under mild conditions, high‐valuation buyers are all located in the same submarket, and low valuation buyers can be in: (i) the same submarket, (ii) a different submarket, and (iii) a mixture of (i) and (ii). The decentralized equilibrium is efficient when sellers can post auctions with reserve prices or entry fees.

Date: 2023
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Citations: View citations in EconPapers (7)

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https://doi.org/10.1111/iere.12592

Related works:
Working Paper: Meetings and Mechanisms (2022)
Working Paper: Meetings and Mechanisms (2017)
Working Paper: Meetings and Mechanisms (2017)
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