Buyers, sellers and middlemen
Subtitle: variations on search-theoretic themes
By: Yuet-Yee Wong, Randall Wright
Contributors: Wright, Randall; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17511; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17511.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We study bilateral exchange, both direct trade and indirect trade that happens through chains of intermediaries or middlemen.  We develop a model of this activity and present applications.  This illustrates how, and how many, intermediaries get involved, and how the terms of trade are determined.  We show how bargaining with one intermediary depends on upcoming negotiations with downstream intermediaries, leading to holdup problems.  We discuss the roles of buyers and sellers in bilateral exchanges, and how to interpret prices.  We develop a particular bargaining solution and relate it to other solutions.  In addition to contrasting our framework with other models of middlemen, we discuss the connection to different branches of search theory.  We also illustrate how bubbles can emerge in intermediation"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 1/3/2012.

Includes bibliographical references.

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