Resource title

Perfect Competition in a Bilateral Monopoly

Resource image

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Resource description

We show that if limit orders are required to vary smoothly, then strategic (Nash) equilibria of the double auction mechanism yield competitive (Walras) allocations. It is not necessary to have competitors on any side of any market: smooth trading is a substitute for price wars. In particular, Nash equilibria are Walrasian even in a bilateral monopoly.

Resource author

Pradeep Dubey, Dieter Sondermann

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22874

Resource license

Adapt according to the presented license agreement and reference the original author.