Decentralized Nonmonetary Trade
نویسندگان
چکیده
منابع مشابه
Decentralized Trade Mitigates the Lemons Problem
In markets with adverse selection, only low-quality units trade in the competitive equilibrium when the average quality of the good held by sellers is low. We show that under decentralized trade, however, both highand low-quality units trade, although with delay. Moreover, when frictions are small, the surplus realized is greater than the (static) competitive surplus. Thus, decentralized trade ...
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In many contracting settings, actions costly to one party but with no direct benefits to the other (money-burning) may be part of the explicit or implicit contract. A leading example is bureaucratic procedures in an employer-employee relationship. We study a model of delegation with an informed agent, where the principal may impose money-burning on the agent as a function of the agent’s choice ...
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ژورنال
عنوان ژورنال: Econometrica
سال: 1976
ISSN: 0012-9682
DOI: 10.2307/1911547