In many markets, consumers obtain price quotes before making purchases. This paper considers a fixed-sample size model of consumer search for price quotes when sellers must spend resources to learn the true cost of providing goods/services. It is found that (1) even with ex ante identical consumers and sellers, there is price dispersion in the equilibrium; (2) the expected equilibrium price can...

This paper studies the existence of single-price price equilibrium from a given initial distribution of money holdings in a search-theoretic model of money where agents have no time preference. The model is similar to recent models (Green and Zhou [2] and Zhou [5]) of search economies with no constraints on money inventories, except that here money is modeled as indivisible and traders are assu...

This study proposes a novel option-revenue sharing coordination contract framework. In the proposed model, the retailer determines the number of order sales effort. The manufacturer sets the price of products for the wholesale strategy. The investigated supply chain problem analyzes the results of different strategies. In the proposed coordination contract problem, two types of games including ...

The analysis of equilibrium in double auctions is complicated, with almost no closed-form examples and with formal results limited to bounds on bidding behavior. We consider the buyer’s bid double auction in a correlated, private values model. Sellers have the incentive to submit their costs as their asks while buyers strategically underbid. We determine (i) the asymptotic distribution of the e...

We propose a continuous-time model of trading with heterogeneous beliefs. Risk-neutral agents face quadratic costs-of-carry on positions and thus their marginal valuation of the asset decreases with the size of their position, as it would be the case for risk-averse agents. In the equilibrium models of heterogeneous beliefs that followed the work by Harrison and Kreps, investors are risk-neutra...

We investigate the effect of sequential commitment in the decentralized newsvendor model with price-dependent demand. Sequential commitment allows the self-profit maximizing parties to commit to contract parameters (e.g., wholesale price, retail price, buyback price and order quantity) sequentially and alternately, and we investigate its effect on the equilibrium profits of the channel and its ...

Cochrane (2005) employs a well specified Walrasian general equilibrium model to defend the fiscal theory of the price level against two forms of criticism; that: (1) it implies the violation of Walras’s Law and, (2) the completely cashless, frictionless version of the model cannot determine the price level. Of the two criticisms only the second is substantive. This paper explains why no version...