The Strategic Exploitation of Limited Information and Opportunity in Networked Markets

Dan Ladley, Seth Bullock

Research output: Contribution to journalArticle (Academic Journal)peer-review

4 Citations (Scopus)

Abstract

This paper studies the effect of constraining interactions within a market. A model is analysed in which boundedly rational agents trade with and gather information from their neighbours within a trade network. It is demonstrated that a trader's ability to profit and to identify the equilibrium price is positively correlated with its degree of connectivity within the market. Where traders differ in their number of potential trading partners, well-connected traders are found to benefit from aggressive trading behaviour.Where information propagation is constrained by the topology of the trade network, connectedness affects the nature of the strategies employed.
Original languageEnglish
Pages (from-to)295-315
Number of pages21
JournalComputational Economics
Volume32
Issue number3
Early online date24 Apr 2008
DOIs
Publication statusPublished - Oct 2008

Fingerprint

Dive into the research topics of 'The Strategic Exploitation of Limited Information and Opportunity in Networked Markets'. Together they form a unique fingerprint.

Cite this