at Google ScholarTitle data
Napel, Stefan ; Korth, Christian:
Fairness, Price Stickiness, and History Dependence in Decentralized Trade.
In: Journal of Economic Behavior & Organization.
Vol. 71
(2009)
Issue 2
.
- pp. 502-514.
ISSN 1879-1751
DOI: https://doi.org/10.1016/j.jebo.2009.03.010
Abstract in another language
The paper investigates price formation in a decentralized market with random matching. Agents are assumed to have subdued social preferences: buyers, for example, prefer a lower price to a higher one but experience reduced utility increases below a reference price which serves as a common fairness benchmark. The strategic equilibrium reflects market fundamentals, but it is markedly less sensitive to the buyer-seller ratio near the fair price benchmark. Prices may be sticky around very different reference levels in markets with otherwise identical fundamentals. The implied history dependence turns out to be mitigated rather than exacerbated by friction.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | random matching; price stickiness; social preferences; history dependence;
reference dependence; |
| Subject classification: | C78; D49; D63; C91 |
| Institutions of the University: | Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics IV - Microeconomics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics IV - Microeconomics > Chair Economics IV - Microeconomics - Univ.-Prof. Dr. Stefan Napel |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences 300 Social sciences > 320 Political science 300 Social sciences > 330 Economics |
| Date Deposited: | 12 Feb 2016 10:15 |
| Last Modified: | 01 Mar 2021 10:22 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/30230 |