IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/1999018.html
   My bibliography  Save this paper

Market games with multiple trading posts

Author

Listed:
  • KOUTSOUGERAS, Leonidas

    (School of Economic Studies, University of Manchester and Department of Econometrics, Tilburg University)

Abstract

We study market games with multiple posts per commodity. We provide some facts that characterize prices of commodities across posts and show the following results: (i) As the number of agents increases, the price variability across posts for a commodity becomes smaller and it becomes zero when the number of agents becomes inffinite, irrespectively of the distribution of characteristics in the economy. (ii) The set of equilibrium prices and allocations of a market game is a subset of the set of equilibria of another game with more trading posts per commodity. (iii) We demonstrate via an example that the inclusion can be strict, as there are equilibria with price disparities across posts for a commodity which cannot be captured with less trading posts. (iv) One can pass from an equilibrium of a market game into an equilibrium of a game with less trading posts per commodity, by consolidating posts where the price of a commodity is uniform.

Suggested Citation

  • KOUTSOUGERAS, Leonidas, 1999. "Market games with multiple trading posts," LIDAM Discussion Papers CORE 1999018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1999018
    as

    Download full text from publisher

    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1999.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Postlewaite, A & Schmeidler, David, 1978. "Approximate Efficiency of Non-Walrasian Nash Equilibria," Econometrica, Econometric Society, vol. 46(1), pages 127-135, January.
    2. Peck, James & Shell, Karl & Spear, Stephen E., 1992. "The market game: existence and structure of equilibrium," Journal of Mathematical Economics, Elsevier, vol. 21(3), pages 271-299.
    3. Dubey, Pradeep & Shubik, Martin, 1978. "A theory of money and financial institutions. 28. The non-cooperative equilibria of a closed trading economy with market supply and bidding strategies," Journal of Economic Theory, Elsevier, vol. 17(1), pages 1-20, February.
    4. Koutsougeras, L., 1999. "A Remark on the Number of Trading Posts in Strategic Market Games," Other publications TiSEM eac59545-f91e-41f1-8067-1, Tilburg University, School of Economics and Management.
    5. Sahi, Siddhartha & Yao, Shuntian, 1989. "The non-cooperative equilibria of a trading economy with complete markets and consistent prices," Journal of Mathematical Economics, Elsevier, vol. 18(4), pages 325-346, September.
    6. Martin Shubik, 1977. "A Theory of Money and Financial Institutions," Cowles Foundation Discussion Papers 462, Cowles Foundation for Research in Economics, Yale University.
    7. Koutsougeras, L., 1999. "A Remark on the Number of Trading Posts in Strategic Market Games," Discussion Paper 1999-04, Tilburg University, Center for Economic Research.
    8. KOUTSOUGERAS, Leonidas C., 1999. "A remark on the number of trading posts in strategic market games," LIDAM Discussion Papers CORE 1999005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Shapley, Lloyd S & Shubik, Martin, 1977. "Trade Using One Commodity as a Means of Payment," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 937-968, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Régis Breton & Bertrand Gobillard, 2005. "Robustness of equilibrium price dispersion in finite market games," Post-Print halshs-00257207, HAL.
    2. Giraud, Gael, 2003. "Strategic market games: an introduction," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 355-375, July.
    3. Koutsougeras, L., 1999. "Market Games with Multiple Trading Posts," Discussion Paper 1999-40, Tilburg University, Center for Economic Research.
    4. Koutsougeras, Leonidas C., 2003. "Non-Walrasian equilibria and the law of one price," Journal of Economic Theory, Elsevier, vol. 108(1), pages 169-175, January.
    5. Koutsougeras, L., 1999. "Market Games with Multiple Trading Posts," Other publications TiSEM 2c6ceba8-81ce-402f-a3fa-1, Tilburg University, School of Economics and Management.
    6. Régis Breton & Bertrand Gobillard, 2006. "Robustness of equilibrium price dispersion in finite market games," Working Papers hal-04138854, HAL.
    7. Toraubally, Waseem A., 2018. "Large market games, the law of one price, and market structure," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 13-26.
    8. Leonidas C. Koutsougeras & Claudia Meo, 2018. "An asymptotic analysis of strategic behavior for exchange economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(2), pages 301-325, August.
    9. Koutsougeras, Leonidas C., 2003. "Convergence to no arbitrage equilibria in market games," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 401-420, July.
    10. Dmitry Levando, 2012. "A Survey Of Strategic Market Games," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(194), pages 63-106, July - Se.
    11. Koutsougeras, Leonidas C., 2009. "Convergence of strategic behavior to price taking," Games and Economic Behavior, Elsevier, vol. 65(1), pages 234-241, January.
    12. Andrés Carvajal, 2018. "Arbitrage pricing in non-Walrasian financial markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(4), pages 951-978, December.
    13. Duffy, John & Matros, Alexander & Temzelides, Ted, 2011. "Competitive behavior in market games: Evidence and theory," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1437-1463, July.
    14. Leonidas Koutsougeras, 2007. "From strategic to price taking behavior," Economics Discussion Paper Series 0717, Economics, The University of Manchester.
    15. Dubey, Pradeep & Sahi, Siddhartha & Shubik, Martin, 2018. "Money as minimal complexity," Games and Economic Behavior, Elsevier, vol. 108(C), pages 432-451.
    16. Busetto, Francesca & Codognato, Giulio & Ghosal, Sayantan, 2011. "Noncooperative oligopoly in markets with a continuum of traders," Games and Economic Behavior, Elsevier, vol. 72(1), pages 38-45, May.
    17. Alexander Matros & Ted Temzelides, 2004. "Evolution and Walrasian Behavior in Market Games," Game Theory and Information 0409009, University Library of Munich, Germany.
    18. Barreda-Tarrazona, Iván & García-Gallego, Aurora & Georgantzís, Nikolaos & Ziros, Nicholas, 2018. "Market games as social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 435-444.
    19. Dubey, Pradeep & Sahi, Siddhartha & Shubik, Martin, 2018. "Graphical exchange mechanisms," Games and Economic Behavior, Elsevier, vol. 108(C), pages 452-465.
    20. Bloch, Francis & Ferrer, Helene, 2001. "Trade Fragmentation and Coordination in Strategic Market Games," Journal of Economic Theory, Elsevier, vol. 101(1), pages 301-316, November.

    More about this item

    Keywords

    trading posts; law of one price.;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:1999018. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.