| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059867 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠We endogenize the trading mechanism selection with risk-averse buyers. ⺠Fixed pricing is the only mechanism where buyers know how much to pay in advance. ⺠Remaining mechanism (auctions, bargaining, etc.) expose buyers to the “price risk”. ⺠In the unique symmetric equilibrium all sellers trade via fixed pricing.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cemil Selcuk,