Efficiency and separability in economies with a trade center

D. Diamantaras, R.P. Gilles, P.H.M. Ruys

Research output: Working paperDiscussion paperOther research output

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Abstract

We discuss the endogenous selection of a costly allocation mechanism in a pure exchange economy. The allocation mechanism is modeled as an abstract trade center exhibiting setup costs, access costs and linear transaction costs. Exactly one trade center has to be selected. We define Pareto efficiency in this setting and decentralize decision making concerning consumption as well as the choice of a trade center through the concept of a separable valuation equilibrium. In this equilibrium concept trade centers are assigned individualized nonlinear prices.
Original languageEnglish
PublisherUnknown Publisher
Number of pages15
Volume1994-107
Publication statusPublished - 1994

Publication series

NameCentER Discussion Paper
Volume1994-107

Fingerprint

Separability
Allocation mechanisms
Pareto efficiency
Transaction costs
Setup cost
Exchange economy
Decision making
Costs

Keywords

  • Efficiency
  • International Trade
  • Costs
  • Allocation
  • Separability
  • international economics

Cite this

Diamantaras, D., Gilles, R. P., & Ruys, P. H. M. (1994). Efficiency and separability in economies with a trade center. (CentER Discussion Paper; Vol. 1994-107). Unknown Publisher.
Diamantaras, D. ; Gilles, R.P. ; Ruys, P.H.M. / Efficiency and separability in economies with a trade center. Unknown Publisher, 1994. (CentER Discussion Paper).
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Diamantaras, D, Gilles, RP & Ruys, PHM 1994 'Efficiency and separability in economies with a trade center' CentER Discussion Paper, vol. 1994-107, Unknown Publisher.

Efficiency and separability in economies with a trade center. / Diamantaras, D.; Gilles, R.P.; Ruys, P.H.M.

Unknown Publisher, 1994. (CentER Discussion Paper; Vol. 1994-107).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

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AU - Gilles, R.P.

AU - Ruys, P.H.M.

N1 - Pagination: 15

PY - 1994

Y1 - 1994

N2 - We discuss the endogenous selection of a costly allocation mechanism in a pure exchange economy. The allocation mechanism is modeled as an abstract trade center exhibiting setup costs, access costs and linear transaction costs. Exactly one trade center has to be selected. We define Pareto efficiency in this setting and decentralize decision making concerning consumption as well as the choice of a trade center through the concept of a separable valuation equilibrium. In this equilibrium concept trade centers are assigned individualized nonlinear prices.

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KW - International Trade

KW - Costs

KW - Allocation

KW - Separability

KW - international economics

M3 - Discussion paper

VL - 1994-107

T3 - CentER Discussion Paper

BT - Efficiency and separability in economies with a trade center

PB - Unknown Publisher

ER -

Diamantaras D, Gilles RP, Ruys PHM. Efficiency and separability in economies with a trade center. Unknown Publisher. 1994. (CentER Discussion Paper).