TY - GEN
T1 - Price variation in a bipartite exchange network
AU - Gradwohl, Ronen
PY - 2008
Y1 - 2008
N2 - We analyze the variation of prices in a model of an exchange market introduced by Kakade et al. [11], in which buyers and sellers are represented by vertices of a bipartite graph and trade is allowed only between neighbors. In this model the graph is generated probabilistically, and each buyer is connected via preferential attachment to v sellers. We show that even though the tail of the degree distribution of the sellers gets heavier as v increases, the prices at equilibrium decrease exponentially with v. This strengthens the intuition that as the number of vendors available to buyers increases, the prices of goods decrease.
AB - We analyze the variation of prices in a model of an exchange market introduced by Kakade et al. [11], in which buyers and sellers are represented by vertices of a bipartite graph and trade is allowed only between neighbors. In this model the graph is generated probabilistically, and each buyer is connected via preferential attachment to v sellers. We show that even though the tail of the degree distribution of the sellers gets heavier as v increases, the prices at equilibrium decrease exponentially with v. This strengthens the intuition that as the number of vendors available to buyers increases, the prices of goods decrease.
UR - http://www.scopus.com/inward/record.url?scp=44449123581&partnerID=8YFLogxK
U2 - 10.1007/978-3-540-79309-0_11
DO - 10.1007/978-3-540-79309-0_11
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AN - SCOPUS:44449123581
SN - 3540793089
SN - 9783540793083
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 109
EP - 120
BT - Algorithmic Game Theory - First International Symposium, SAGT 2008, Proceedings
T2 - 1st International Symposium on Algorithmic Game Theory, SAGT 2008
Y2 - 30 April 2008 through 2 May 2008
ER -