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Full-Text Articles in Economic Theory
Exogenous Coalition Formation In The E-Marketplace Based On Geographical Proximity, Tomasz Michalak, Joanna Tyrowicz, Peter Mcburney, Michael Wooldridge
Exogenous Coalition Formation In The E-Marketplace Based On Geographical Proximity, Tomasz Michalak, Joanna Tyrowicz, Peter Mcburney, Michael Wooldridge
Joanna Tyrowicz
This paper considers a model for exogenous coalition formation in e-marketplaces. Using its informational advantage, an e-retailer creates coalitions of customers based on geographical proximity. Most of the literature regards this process as endogenous: a coalition leader among the buyers bundles eventual purchases together in order to obtain a better bargaining position. In contrast – and in response to what is typically observed in business practice – we analyse a situation in which an existing e-retailer exogenously forms customers’ coalitions. Results of this study are highly encouraging. Namely, we demonstrate that even under highly imperfect warehouse management schemes leading to …
Simple Economies With Multiple Equilibria, Ted C. Bergstrom, Ken-Ichi Shimomura, Takehiko Yamato
Simple Economies With Multiple Equilibria, Ted C. Bergstrom, Ken-Ichi Shimomura, Takehiko Yamato
Ted C Bergstrom
This paper studies a general class of pure exchange economies that have multiple equilibria, which extend an example presented by Lloyd Shapley and Martin Shubik. For such economies, we find easily verified conditions that determine whether there are multiple equilibria. We also provide simple methods for constructing economies in which arbitrary pre-specified sets of prices are equilibria. These economies have simple comparative statics, since prices at interior competitive equilibrium depend on the parameters of utility but not on the endowment quantities.