Uniqueness of Equilibrium in Directed Search Models
| Author | : Jaehong Kim |
| Publisher | : |
| Total Pages | : 31 |
| Release | : 2015 |
| ISBN-10 | : OCLC:1307029846 |
| ISBN-13 | : |
| Rating | : 4/5 ( Downloads) |
Download or read book Uniqueness of Equilibrium in Directed Search Models written by Jaehong Kim and published by . This book was released on 2015 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study a decentralized trading model as in Peters (1984), where a finite number of heterogeneous capacity-constrained sellers compete for a finite number of homogeneous buyers, by posting prices. This "directed search" model is known to admit symmetric equilibria; yet, uniqueness has proved elusive. This study makes two contributions: a substantive contribution is to establish uniqueness of symmetric equilibrium; a methodological contribution is to develop a tool based on directional derivatives to characterize equilibrium.
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