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Gainers and losers from market integration

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  • Gersbach, Hans
  • Haller, Hans

Abstract

We compare integration of economic, matching and networking markets. There can be losers from integration in all three cases, but their relative numbers depend on the type of market. There can be many losers from integration of pure exchange economies. There are relatively few losers from integration of networking markets. In the matching case, the relative numbers tend to lie between those of the other two cases. In particular, in the grand economy of matching markets, there are weakly more non-losers than losers, and with strict preferences there are weakly more gainers than losers.

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  • Gersbach, Hans & Haller, Hans, 2022. "Gainers and losers from market integration," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 32-39.
    • Handle: RePEc:eee:matsoc:v:116:y:2022:i:c:p:32-39
    DOI: 10.1016/j.mathsocsci.2021.12.003
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    More about this item

    Keywords

    Competitive exchange; Matching theory; Networks; Market integration; Gainers and losers;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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