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We study bilateral exchange, both direct trade and indirect trade that happens through chains of intermediaries or middlemen. We develop a model of this activity and present applications. This illustrates how, and how many, intermediaries get involved, and how the terms of trade are determined. We show how bargaining with one intermediary depends on(More)
Acknowledgements Gratitude … is a sickness suffered by dogs. There are many people that worked really hard to make this project something of real value. Whether I was one of this select group is debatable, however, it is certain that I am in the debt of the following individuals: The three biggest influencers on this project were surely Patrick Doyle,(More)
This paper shows how including divisibility of goods and productive heterogeneity leads to the emergence of middlemen in an equilibrium search environment. In the baseline model, middlemen are welfare reducing and their number increases as market frictions are reduced. When the model is extended to allow for time taken in production and increasing(More)
Competitive search entails both commitment to and advertising of pay-o¤ relevant aspects of market participants. This paper considers incrementally the implications of each in a labor market where both workers and …rms invest prior to market entry. A wide range of institutional arrangements are addressed within the same general framework. When the(More)
Saturn's magnetic field acts as an obstacle to solar wind flow, deflecting plasma around the planet and forming a cavity known as the magnetosphere. The magnetopause defines the boundary between the planetary and solar dominated regimes, and so is strongly influenced by the variable nature of pressure sources both outside and within. Following from(More)
A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers' propensity to accept cards reduces the need for buyers to hold cash as the chance of a stock-out (of cash) is reduced. When(More)