Marketmaking Middlemen.

This article develops a model in which market structure is determined endogenously by the choice of intermediation mode. There are two representative modes of intermediation that are widely used in real‐life markets: one is a middleman mode where an intermediary purchases inventory from the wholesal...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 54; no. 1; pp. 83 - 104
Autores principales: Gautier, Pieter, Hu, Bo, Watanabe, Makoto
Formato: Artículo
Publicado: Wiley-Blackwell Mar2023
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Marketmaking Middlemen.
      aug:
        au:
          Gautier, Pieter
          Hu, Bo
          Watanabe, Makoto
        affil:
          Vrije Universiteit Amsterdam, Amsterdam, Netherlands
          Institute of World Economy, School of Economics, Fudan University
          Institute of Economic Research, Kyoto University, Kyoto, Japan
      su:
        Distributors (Commerce)
        Market design & structure (Economics)
        Wholesale trade
      sug:
        subj:
          All other merchant wholesalers
          Wholesale trade agents and brokers
          Wholesale Trade Agents and Brokers
          Distributors (Commerce)
          Market design & structure (Economics)
          Wholesale trade
      ab: This article develops a model in which market structure is determined endogenously by the choice of intermediation mode. There are two representative modes of intermediation that are widely used in real‐life markets: one is a middleman mode where an intermediary purchases inventory from the wholesale market and resells to buyers; the other is a market‐making mode where an intermediary offers a platform for buyers and sellers to meet and trade. We show that a marketmaking middleman, who adopts a mixture of these two intermediation modes, can emerge in a directed search equilibrium and discuss implications for the market structure.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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