Bid and Ask Prices in Hierarchical Trees

  • Willy Spanjers
Part of the Theory and Decision Library book series (TDLC, volume 15)


The main problem with the models of Chapter 3 is that in a natural economic environment equilibrium may fail to exist. In particular, this is the case if one considers the simple model of successive monopolies in which all agents are consumers. The reason for this is that the institutional characteristic of mono pricing does not enable the dominating agent to enforce zero trades. Thus, the dominating agent may be forced into trades that are infeasible for him.


Nash Equilibrium Mixed Strategy Trade Partner Institutional Characteristic Indifference Curve 
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Copyright information

© Springer Science+Business Media Dordrecht 1997

Authors and Affiliations

  • Willy Spanjers
    • 1
  1. 1.University of SaarlandSaarbrückenGermany

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