Trading in networks: Theory and experiments

Syngjoo Choi, Andrea Galeotti, Sanjeev Goyal

Research output: Contribution to journalArticlepeer-review


We propose a model of posted prices in networks. The model maps traditional concepts of market power, competition, and double marginalization into networks, allowing for the study of pricing in complex structures of intermediation, such as supply chains, transportation and communication networks, and financial brokerage. We provide a complete characterization of equilibrium prices. Our experiments complement our theoretical work and point to node criticality as an organizing principle for understanding pricing, efficiency, and the division of surplus in networked markets.

Original languageEnglish (US)
Pages (from-to)784-817
Number of pages34
JournalJournal of the European Economic Association
Issue number4
StatePublished - Aug 1 2017

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


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