Intermediation in Networks
Copyright policy )Intermediation in Networks
I study intermediation in networked markets using a stochastic model of multilateral bargaining in which traders compete on different routes through the network. I characterize stationary equilibrium payoffs as the fixed point of a set of intuitive value function equations and study efficiency and the impact of network structure on payoffs. There is never too little trade but there may be an inefficiency through too much trade in states where delay would be efficient. With homogenous trade surplus the payoffs for players that are not essential to a trade opportunity go to zero as trade frictions vanish.
- Federal Reserve Bank of Cleveland United States
- European University Former Yugoslav Republic of Macedonia
- University of Mannheim Germany
- Federal Reserve System United States
- Universität Mannheim
Middlemen, intermediation, 330, Stochastic models in economics, Network, bargaining; financial networks;intermediation; matching; middlemen; networks; over-the-counter markets; stochastic games, C73, Stochastic Games, stochastic games, C78, middlemen, L14, Trade models, financial networks, ddc:330, matching, bargaining, bargaining; financial networks; intermediation; matching; middlemen; networks; over-the-counter markets; stochastic games, Random Matching, Stochastic Games, Bargaining, Random Matching, Middlemen, Network, networks, bargaining, financial networks,intermediation, matching, middlemen, networks, over-the-counter markets, stochastic games, over-the-counter markets, jel: jel:C73, jel: jel:C78, jel: jel:L14
Middlemen, intermediation, 330, Stochastic models in economics, Network, bargaining; financial networks;intermediation; matching; middlemen; networks; over-the-counter markets; stochastic games, C73, Stochastic Games, stochastic games, C78, middlemen, L14, Trade models, financial networks, ddc:330, matching, bargaining, bargaining; financial networks; intermediation; matching; middlemen; networks; over-the-counter markets; stochastic games, Random Matching, Stochastic Games, Bargaining, Random Matching, Middlemen, Network, networks, bargaining, financial networks,intermediation, matching, middlemen, networks, over-the-counter markets, stochastic games, over-the-counter markets, jel: jel:C73, jel: jel:C78, jel: jel:L14
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