Bargaining and inequity aversion: On the efficiency of the double auction

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 114
Issue: 2
Pages: 178-181

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a bargaining setting with asymmetrically informed, inequity-averse parties, a fully efficient mechanism (i.e., the double auction) exists if and only if compassion is strong. Less compassionate parties do not trade in the double auction in the limit of strong envy.

Technical Details

RePEc Handle
repec:eee:ecolet:v:114:y:2012:i:2:p:178-181
Journal Field
General
Author Count
3
Added to Database
2026-01-29