Middlemen
| Autor: | Makoto Watanabe |
|---|---|
| Přispěvatelé: | Economics, Tinbergen Institute |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Matching (statistics) Inventory holdings media_common.quotation_subject Stockout Financial intermediary Large capacity Context (language use) jel:R1 Retail markups jel:L1 Competition (economics) Microeconomics Intermediary jel:G2 Economics Directed Search Intermediation Inventory holdings media_common Economic surplus Intermediation Ask price Service (economics) Search model jel:F1 jel:L8 Directed search Business jel:D4 Bid price |
| Zdroj: | B.E. Journal of Macroeconomics, 20(2):20190258, 1-37. Walter de Gruyter GmbH Watanabe, M 2020, ' Middlemen : A directed search equilibrium approach ', B.E. Journal of Macroeconomics, vol. 20, no. 2, 20190258, pp. 1-37 . https://doi.org/10.1515/bejm-2019-0258 |
| ISSN: | 1935-1690 |
| DOI: | 10.1515/bejm-2019-0258 |
| Popis: | This paper studies an intermediated market for a homogeneous good with middlemen who hold inventories of the good. Using a directed search approach, I investigate a steady state equilibrium. Under market frictions and competition, the ask price of middlemen includes a retail premium for the immediacy service to buyers and the bid price includes a wholesale premium charged to sellers for guaranteed sale. It is shown that the middlemen enhance the economy-wide eciency, and that the bid-ask spread can be non-monotone in the middlemen’s inventory capacity. The simple model provided here has wide applicability and oers economic insights into many empirically relevant forms of middlemen, especially in the context of financial intermediaries, international trade and retail stores. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|