E. Talamàs, “
Price dispersion in stationary networked markets,”
Games and Economic Behavior, 2019.
AbstractDifferent sellers often sell the same good at different prices. Using a strategic bargaining model, I characterize how the equilibrium prices of a good depend on the interaction between its sellers’ costs, its buyers’ values, and a network capturing various frictions associated with trading it. In contrast to the standard random-matching model of bargaining in stationary markets, I allow agents to strategically choose whom to make offers to, which qualitatively changes how the network shapes prices. As in the random-matching model, the market decomposes into different submarkets, and—in the limit as bargaining frictions vanish—the law of one price holds within but not across them. But strategic choice of partners changes both how the market decomposes into different submarkets and the determinants of each submarket’s price.
PDF E. Talamàs, “
Fair stable sets of simple games,”
Games and Economic Behavior [Special issue in honor of Lloyd Shapley], 2018.
AbstractSimple games serve as abstract representations of voting systems and other group-decision procedures. A stable set (or von Neumann-Morgenstern solution) of a simple game represents a “standard of behavior” that satisfies certain internal and external stability properties. Compound simple games are built out of component games, which are, in turn, “players” of a quotient game. I describe a method to construct fair (or symmetry-preserving) stable sets of compound simple games from fair stable sets of their quotient and components. This method is closely related to the composition theorem of Lloyd Shapley (1963) and contributes to the answer of a question that he formulated: what is the set G of simple games that have a fair stable set? In particular, this method shows that G includes all simple games whose factors--or quotients in their “unique factorization” of Shapley (1967)--are in G. This suggests a path to characterize the set G of all simple games that have a fair stable set.
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