Nonexclusive competition under adverse selection - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
Article Dans Une Revue Theoretical Economics Année : 2014

Nonexclusive competition under adverse selection

Résumé

A seller of a divisible good faces several identical buyers. The quality of the good may be low or high, and is the seller's private information. The seller has strictly convex preferences that satisfy a single-crossing property. Buyers compete by posting menus of nonexclusive contracts, so that the seller can simultaneously and privately trade with several buyers. We provide a necessary and sufficient condition for the existence of a pure-strategy equilibrium. Aggregate equilibrium trades are unique. Any traded contract must yield zero profit. If a quality is actually traded, then it is efficiently traded. Depending on parameters, both qualities may be traded, or only one of them, or the market may break down to a no-trade equilibrium.
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Dates et versions

hal-02636232 , version 1 (27-05-2020)

Identifiants

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Andrea Attar, Thomas Mariotti, François Salanie. Nonexclusive competition under adverse selection. Theoretical Economics, 2014, 9 (1), pp.1-40. ⟨10.3982/TE1126⟩. ⟨hal-02636232⟩
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