Eventi del
6 2020 12:45 - 14:00
Aula Seminari 5.e4.sr04 - Via Roentgen 1
Theory and Experiments
Dealer Networks: (In)Efficiency
Daniele Condorelli (University of Warwick) Registration is required to attend the On Campus Brown Bag event, which is restricted to Bocconi Faculty and Students. All other interested parties are invited to participate via Live Streaming, please contact erika.somma@unibocconi.it to receive the link
Abstract: A single object is traded in a network of dealers, who have private information about their private value for it. The number of connections that each dealer has is random and determined, once they purchase the object, by a common degree distribution. Sellers post mechanisms to potential buyers in their neighborhood. We show that, despite asymmetric information and limited trading opportunities, ex-post efficiency generally attains in the limit as trading becomes more and more frequent, except where the network is a chain of monopolists (i.e. each seller has always precisely one single buyer).