Trading networks with frictions

We show how frictions and continuous transfers jointly affect equilibria in a model of matching in trading networks. Our model incorporates distortionary frictions such as transaction taxes and commissions. When contracts are fully substitutable for firms, competitive equilibria exist and coincide w...

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Bibliographic Details
Main Authors: Fleiner, T, Jagadeesan, R, Janko, Z, Teytelboym, A
Format: Journal article
Published: Economic Society 2019

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