Trading-Network Games
Lead Research Organisation:
University of Essex
Department Name: Economics
Abstract
Abstracts are not currently available in GtR for all funded research. This is normally because the abstract was not required at the time of proposal submission, but may be because it included sensitive information such as personal details.
Organisations
People |
ORCID iD |
| Andrea Galeotti (Principal Investigator) |
Publications
Galeotti A
Endogenous Trading Networks
in Working Paper Essex
Galeotti A
Bilateral Trading in Networks
in Working Paper Essex
| Description | Following a time honoured tradition in economics, most theories of markets assume that every agent is free to trade with every other agent in the economy. Markets are defined by the characteristics of the good being traded, the information possessed by the agents, and the interaction technology. Relationship specific characteristics, such as the geographical localization of the partners and the reciprocal reputation, are generally abstracted away. We model heterogeneous trading relationships by representing the economy as a network, where the presence of a link between two agents is interpreted as anything that allows or facilitates trade. The first contribution of our project is methodological. We provide a general framework to study both the patterns of trade that arise in economies, described as trading networks, and the endogenous formation of trading networks. The model is general and allows for incorporation of a wide range of different forms of trade institutions. The second contribution is the study of two specific models, each belonging to our general framework. The first model studies the trade of an object in a given network when negotiations are conducted bilaterally. The second model studies the formation of trading networks and the extent to which they depart from efficient trading networks under ex-post efficient allocations. |
| Exploitation Route | The work we have conducted in this proposal has led two research papers. These papers are having influence in the profession and are becoming one of the first outputs in the literature of strategic intermediation in networks. This is a very active area of research at the moment. I have been recently invited to edit an Handbook Chapter on this topic. |
| Sectors | Creative Economy,Digital/Communication/Information Technologies (including Software),Financial Services, and Management Consultancy |
| Description | The two research papers we have completed are theoretical in nature. They now constitute two outputs which are among the first to initiate a study of strategic intermediation in networks. These two papers are influencing a new sub-field in the economic of networks. |
| Sector | Creative Economy,Digital/Communication/Information Technologies (including Software),Financial Services, and Management Consultancy |
| Impact Types | Economic |
| Description | Networks and markets |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other academic audiences (collaborators, peers etc.) |
| Results and Impact | Recently networked markets have been studied in a variety of subjects including computer science, economics and physics. There is also attention from central banks with respect to financial networks, and the need to develop better tools and theories to understand the stability of financial networks. The aim of this conference was to bring together some of the most interesting research that is currently being done in these subjects. Participants included practitioners, academics and many PhD student from UK institution and European Institutions. The event has created lot of interest on the different topics of network economics. |
| Year(s) Of Engagement Activity | 2011 |