On Trade in Bilateral Oligopolies with Altruistic and Spiteful Agents

Lombardi, M; Tonin, S

doi:10.1007/s40505-019-00177-1

On Trade in Bilateral Oligopolies with Altruistic and Spiteful Agents

Lombardi, M; Tonin, S

Authors

M Lombardi

S Tonin

Abstract

This paper studies the effects of altruism and spitefulness in a two-sided market in which agents behave strategically and trade according to the Shapley–Shubik mechanism. By assuming that altruistic agents have concerns for others on the opposite side of the market, it shows that agents always find advantageous to trade. However, they prefer to stay out of the market and consume their endowments when there are altruistic agents who have concerns for the welfare of those on the same side of the market, or when there are spiteful agents. These non-trade situations occur either because the necessary first-order conditions for optimality are violated or because agents’ payoff functions are not concave.

Citation

Lombardi, M., & Tonin, S. (2020). On Trade in Bilateral Oligopolies with Altruistic and Spiteful Agents. Economic Theory Bulletin, 8(2), 203-218. https://doi.org/10.1007/s40505-019-00177-1

Journal Article Type	Article
Acceptance Date	Sep 4, 2019
Online Publication Date	Sep 14, 2019
Publication Date	2020-10
Deposit Date	Sep 6, 2019
Publicly Available Date	Sep 19, 2019
Journal	Economic Theory Bulletin
Electronic ISSN	2196-1093
Publisher	Springer
Peer Reviewed	Peer Reviewed
Volume	8
Issue	2
Pages	203-218
DOI	https://doi.org/10.1007/s40505-019-00177-1
Public URL	https://durham-repository.worktribe.com/output/1293958

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