MARKET INSTITUTIONS: AN EXPOSITORY ESSAY
MARKET INSTITUTIONS: AN EXPOSITORY ESSAY
Author(s): Nirvikar SinghSubject(s): Economy
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: market; institution; price; equilibrium; behavior; model
Summary/Abstract: This essay provides an elementary, unified introduction to the models of market institutions that go beyond the competitive model of price-taking behavior on both sides of the market. Several models of market institutions that govern price determination are explored and compared, including contracting, posted prices, bilateral bargaining, middlemen, and auctions. While equilibrium models still do not capture the full possibilities for market behavior, modeling specific market institutions reduces the level of abstraction inherent in the standard competitive model.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 2011
- Issue No: 1
- Page Range: 34-51
- Page Count: 18
- Language: English
- Content File-PDF
