A model of merchants

• 成果类型: Article
• 署名作者: Watanabe, Makoto
• 署名单位: Universidad Carlos III de Madrid
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2010.02.011
• 发表日期: 2010
• 页码: 1865-1889
• 关键词: Retail trades; specialization; Turnover behaviors; directed search

摘要

I propose a simple model of merchants who are specialized in buying and selling a homogenous good. Facing the same frictions as in the buyer-seller direct trades, merchants can make profits with an ability to buy and sell many units of the good. They set the price to compete in the market and provide buyers with a strong likelihood of obtaining the good. This paper establishes a turnover equilibrium where some agents choose to become merchants endogenously. An interesting multiplicity can emerge. (C) 2010 Elsevier Inc. All rights reserved.