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Single-price Equilibria (single-price + equilibrium)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

On the existence of single-price equilibria in a matching model with divisible money and production cost

INTERNATIONAL JOURNAL OF ECONOMIC THEORY, Issue 3 2005
Kazuya Kamiya
C78; D51; D83; E40 The present paper investigates Zhou's (1999) money search model, where money is divisible, agents can hold any amount of money and production of goods is costly, and presents a sufficient condition, expressed in terms of exogenously given parameters, for the existence of single-price equilibria. [source]

A THEORY OF MONEY AND MARKETPLACES*

INTERNATIONAL ECONOMIC REVIEW, Issue 1 2005
Akihiko Matsui
This article considers an infinitely repeated economy with divisible fiat money. The economy has many marketplaces that agents choose to visit. In each marketplace, agents are randomly matched to trade goods. There exist a variety of stationary equilibria. In some equilibrium, each good is traded at a single price, whereas in another, every good is traded at two different prices. There is a continuum of such equilibria, which differ from each other in price and welfare levels. However, it is shown that only the efficient single-price equilibrium is evolutionarily stable. [source]

Price dispersion in a model of identical agents with perfect information

PACIFIC ECONOMIC REVIEW, Issue 1 2004
Zhiqi Chen
The driving force in the model is service capacity and congestion cost. Each firm chooses a service capacity. Customers of a firm bear a congestion cost which, for a fixed service capacity, is an increasing function of the number of customers served by this firm. We demonstrate that under certain conditions the combined profit of two firms and the total surplus are higher in a price-dispersion equilibrium than in a single-price equilibrium. [source]