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Price Variation in a Bipartite Exchange Network, Proceedings of the 2008 International Symposium on Algorithmic Game Theory

Abstract

We analyze the variation of prices in a model of an exchange market introduced by Kakade et al. [11], in which buyers and sellers are represented by vertices of a bipartite graph and trade is allowed only between neighbors. In this model the graph is generated probabilistically, and each buyer is connected via preferential attachment to v sellers. We show that even though the tail of the degree distribution of the sellers gets heavier as v increases, the prices at equilibrium decrease exponentially with v . This strengthens the intuition that as the number of vendors available to buyers increases, the prices of goods decrease.

Type

Author(s)

Ronen Gradwohl

Date Published

2008

Citations

Gradwohl, Ronen. 2008. Price Variation in a Bipartite Exchange Network. Proceedings of the 2008 International Symposium on Algorithmic Game Theory. 1: 109-120.

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