Trade Fragmentation and Coordination in Strategic Market Games
Francis Bloch
(1)
,
Hélène Ferrer
(2)
Francis Bloch
- Fonction : Auteur
- PersonId : 743522
- IdHAL : francis-bloch
- IdRef : 131891502
Hélène Ferrer
- Fonction : Auteur
- PersonId : 176373
- IdHAL : helene-ferrer-valognes
- ORCID : 0000-0002-2117-9420
- IdRef : 243383894
Résumé
This paper analyzes the incentives to trade and the validity of the law of one price in three strategic market games with multiple trading posts. In bilateral oligopolies, where traders have corner endowments in one commodity, all agents participate in all the markets. The law of one price holds in bilateral oligopolies and in the buy-or-sell market game, where equilibrium strategies are locally unique. When traders can simultaneously buy and sell on every market, the law of one price fails and the set of equilibrium prices generically has the same dimension as the number of active markets.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Trade Fragmentation and Coordination in Strategic Market Games
|
Résumé |
en
This paper analyzes the incentives to trade and the validity of the law of one price in three strategic market games with multiple trading posts. In bilateral oligopolies, where traders have corner endowments in one commodity, all agents participate in all the markets. The law of one price holds in bilateral oligopolies and in the buy-or-sell market game, where equilibrium strategies are locally unique. When traders can simultaneously buy and sell on every market, the law of one price fails and the set of equilibrium prices generically has the same dimension as the number of active markets.
|
Auteur(s) |
Francis Bloch
1
, Hélène Ferrer
2
1
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
2
CREM -
Centre de recherche en économie et management
( 894 )
- 7 place Hoche, BP 86514
35065 RENNES CEDEX
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2001-11
|
Volume |
101
|
Numéro |
1
|
Page/Identifiant |
301-316
|
Domaine(s) |
|
Mots-clés (JEL) |
|
DOI | 10.1006/jeth.2000.2730 |
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