Middlemen: the good, the bad, and the ugly.

Abstract: We examine the role of a middleman as an expert in markets. A seller's effort determines the quality of the good. Buyers observe neither the seller's effort nor the good's quality. A middleman, after observing a signal about the good's quality, decides whether to purchase it and then to se...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 1; pp. 3 - 23
Autores principales: Biglaiser, Gary, Li, Fei
Formato: Artículo
Publicado: Wiley-Blackwell Spring2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Middlemen: the good, the bad, and the ugly.
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        au:
          Biglaiser, Gary
          Li, Fei
        affil: University of North Carolina at Chapel Hill
      su:
        Goldman Sachs & Co.
        Homeowners
        Social services
        Distributors (Commerce)
        Bargaining power
      sug:
        subj:
          Homeowners
          Social services
          Goldman Sachs & Co.
          All other merchant wholesalers
          Other Individual and Family Services
          Distributors (Commerce)
          Bargaining power
      ab: Abstract: We examine the role of a middleman as an expert in markets. A seller's effort determines the quality of the good. Buyers observe neither the seller's effort nor the good's quality. A middleman, after observing a signal about the good's quality, decides whether to purchase it and then to sell it. We show that the presence of a middleman may either reduce or exacerbate the seller's moral hazard problem. We also consider a model with multiple middlemen. We find that the seller's effort is minimized if either the middleman's signal is perfect or the number of middlemen is large.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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