Ready to trade? On budget-balanced e¢ cient trade with uncertain arrival

Garrett, Daniel F. (2016) Ready to trade? On budget-balanced e¢ cient trade with uncertain arrival. , Toulouse

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Official URL: http://tse-fr.eu/pub/31910

Abstract

This paper studies the design of e¢ cient mechanisms for repeated trade in settings where (i) tradersvalues and costs evolve randomly with time, and (ii) the traders become ready and available to participate in the mechanism at random times. Under a weak condition, analogous to the non-overlapping supports condition of Myerson and Satterthwaite (1983), e¢ cient trade is only feasible if the mechanism runs an expected budget decit. The smallest such decit is attainable by a sequence of static mechanisms.

Item Type: Monograph (Working Paper)
Language: English
Date: September 2016
Place of Publication: Toulouse
Uncontrolled Keywords: dynamic mechanism design, repeated trade, budget balance, dynamic arrivals, participation constraints
JEL codes: D82 - Asymmetric and Private Information
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 24 Apr 2018 09:13
Last Modified: 24 Apr 2018 09:13
OAI ID: oai:tse-fr.eu:31910
URI: http://publications.ut-capitole.fr/id/eprint/25639

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