Fairness and Competition in a Bilateral Matching Market
Title | Fairness and Competition in a Bilateral Matching Market PDF eBook |
Author | Helmut Bester |
Publisher | |
Pages | 0 |
Release | 2023 |
Genre | |
ISBN |
This paper analyzes fairness and bargaining in a dynamic bilateral matching market. Traders from both sides of the market are pairwise matched to share the gains from trade. The bargaining outcome depends on the traders' fairness attitudes. In equilibrium fairness matters because of market frictions. But, when these frictions become negligible, the equilibrium approaches the Walrasian competitive equilibrium, independently of the traders' inequity aversion. Fairness may yield a Pareto improvement; but also the contrary is possible. Overall, the market implications of fairness are very different from its effects in isolated bilateral bargaining.
Fairness in Bargaining and Markets
Title | Fairness in Bargaining and Markets PDF eBook |
Author | Christian Korth |
Publisher | Springer Science & Business Media |
Pages | 175 |
Release | 2009-07-25 |
Genre | Business & Economics |
ISBN | 3642022537 |
This book focuses on economic bargaining theory. Economic bargaining theory seeks to predict the outcomes of bargaining situations. In such situations, govern ments, ?rms, or individuals share a mutual interest in cooperation; however, they also have con?icting interests regarding the terms of an agreement. A classic ex ample of such a situation is wage bargaining between unions and employers. More commonplace examples also exist. For instance, a discussion between partners on how to spend an evening can be understood as a bargaining situation. Economic bargaining theory explores the relationship between bargaining situ ations and the outcomes of the bargaining. Economists have two primary reasons to show interest in this relationship. The ?rst reason is that many important human interactions, including economic interactions, are bargaining situations. The second reason is that the understanding of these situations may inform the economic theory of markets. The tool utilized in this study is the mathematical theory of games. Predictions for bargaining outcomes are developed by modeling the bargaining situation as a strategic game and using game theoretic equilibrium concepts in order to solve the game. In this approach, the speci?c identi?ed bargaining outcome depends on the assumptions underlying the model. The neoclassical and fundamental assumption is that of rational agents—called economic men—who strive to maximize their utility based on stable preferences.
Fairness and Implementation in Matching Markets
Title | Fairness and Implementation in Matching Markets PDF eBook |
Author | Antonio Romero Medina |
Publisher | |
Pages | 160 |
Release | 1995 |
Genre | |
ISBN |
Fairness, Errors and the Power of Competition
Title | Fairness, Errors and the Power of Competition PDF eBook |
Author | Ernst Fehr |
Publisher | |
Pages | 54 |
Release | 2003 |
Genre | |
ISBN |
Almost Mutually Best in Matching Markets
Title | Almost Mutually Best in Matching Markets PDF eBook |
Author | Flip Klijn |
Publisher | |
Pages | |
Release | 2019 |
Genre | |
ISBN |
Bilateral Trade and Opportunism in a Matching Market
Title | Bilateral Trade and Opportunism in a Matching Market PDF eBook |
Author | Garey Ramey |
Publisher | |
Pages | 35 |
Release | 1996 |
Genre | Contracts |
ISBN |
Fairness in Matching Markets: Experimental Evidence
Title | Fairness in Matching Markets: Experimental Evidence PDF eBook |
Author | Tobias König |
Publisher | |
Pages | 0 |
Release | 2023 |
Genre | |
ISBN |