1994-12-01
On the possibility of efficient bilateral trade
Publication
Publication
Economic design , Volume 1 - Issue 1 p. 79- 102
I study a sequential process in which different pairs of traders bargain over the terms of trade of an indivisible good. I consider both one-sided and two-sided offers based bargaining at the stage-game level. The sequential process is modelled as an infinite stage-game of incomplete information and the paper studies the efficiency properties of its equilibria. It is shown: With one-sided offers, all equilibria are long-run ex post efficient; with two-sided offers, examples of equilibria are constructed with widely varying efficiency properties.
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| , , , , , | |
| doi.org/10.1007/BF02716615, hdl.handle.net/1765/15226 | |
| Economic design | |
| Organisation | Erasmus School of Economics |
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Goyal, S. (1994). On the possibility of efficient bilateral trade. Economic design, 1(1), 79–102. doi:10.1007/BF02716615 |
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