Kugler, T.;
Neeman, Z.;
Vulkan, N.;
(2003)
Markets versus negotiations: an experimental invesigation.
(ELSE Working Papers
104).
ESRC Centre for Economic Learning and Social Evolution: London, UK.
![[thumbnail of 14576.pdf]](https://discovery-pp.ucl.ac.uk/style/images/fileicons/application_pdf.png) Preview |
PDF
14576.pdf Download (219kB) |
Abstract
We consider the consequences of competition between two types of experimental exchange mechanisms, a �decentralized bargaining� market, and a �centralized� mar- ket. The experiment demonstrates that decentralized bargaining is subject to a process of unraveling in which relatively weak traders (buyers with high willingness to pay and sellers with low costs) continuously find trading in the centralized market more at- tractive until almost no opportunities for mutually beneficial trade remain outside the centralized marketplace.
| Type: | Working / discussion paper |
|---|---|
| Title: | Markets versus negotiations: an experimental invesigation |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://else.econ.ucl.ac.uk/newweb/papers.php |
| Language: | English |
| Keywords: | JEL classification: C78, D40, L10. Centralized markets, decentralized markets, decentralized bargaining, market design, market formation |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/14576 |
Archive Staff Only
 |
View Item |
