Limits of Exact Equilibria for Capacity Constrained Sellers with Costly Search Export

@article{citeulike:757267, abstract = {This paper studies finite versions of competitive matching models in which sellers announce prices and buyers understand the relationship between price and probability of trade. Two equilibrium concepts are studied for finite games, subgame perfect equilibrium and rational expectations equilibrium. It is shown that the distribution of prices offered by sellers under both equilibrium concepts converges weakly to the same competitive equilibrium distribution of prices. Furthermore, the payoffs that sellers face in both kinds of equilibrium have the market utility property in the limit. Journal of Economic Literature Classification Numbers: C78, D41, D45.}, author = {Peters, Michael}, citeulike-article-id = {757267}, citeulike-linkout-0 = {http://dx.doi.org/10.1006/jeth.2000.2667}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6WJ3-45FCBJJ-1/2/9a979c6a0dabfdc57abb4f0fffd58a69}, doi = {10.1006/jeth.2000.2667}, journal = {Journal of Economic Theory}, keywords = {capacity, search}, month = {December}, number = {2}, pages = {139--168}, posted-at = {2006-07-13 16:09:12}, priority = {2}, title = {Limits of Exact Equilibria for Capacity Constrained Sellers with Costly Search}, url = {http://dx.doi.org/10.1006/jeth.2000.2667}, volume = {95}, year = {2000} }

TY - JOUR ID - citeulike:757267 L3 - citeulike-article-id:757267 N2 - This paper studies finite versions of competitive matching models in which sellers announce prices and buyers understand the relationship between price and probability of trade. Two equilibrium concepts are studied for finite games, subgame perfect equilibrium and rational expectations equilibrium. It is shown that the distribution of prices offered by sellers under both equilibrium concepts converges weakly to the same competitive equilibrium distribution of prices. Furthermore, the payoffs that sellers face in both kinds of equilibrium have the market utility property in the limit. Journal of Economic Literature Classification Numbers: C78, D41, D45. IS - 2 JF - Journal of Economic Theory EP - 168 TI - Limits of Exact Equilibria for Capacity Constrained Sellers with Costly Search VL - 95 SP - 139 KW - capacity KW - search AU - Peters, Michael PY - 2000/12// UR - http://dx.doi.org/10.1006/jeth.2000.2667 ER -