CORDIS Project
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This project analyzes price negotiations in dynamic markets, focusing on the bargaining process between buyers and sellers with private information. It aims to understand how these interactions affect market efficiency and trade surplus distribution.
This proposal studies price negotiations in dynamic markets.
The focus is on one of the most primitive economic problems: a seller and a buyer bargain over the price of a good.
Their cost and values are private information and, if they do not reach an agreement today, they may continue bargaining tomorrow.Somewhat surprisingly, our knowledge about bargaining with two-sided asymmetric information is still quite limited.
Intuitively, on the one hand, signaling forces induce the seller and the buye…
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