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2007 | OriginalPaper | Chapter

The Effect of Mediated Partnerships in Two-Sided Economic Search

Authors : Philip Hendrix, David Sarne

Published in: Cooperative Information Agents XI

Publisher: Springer Berlin Heidelberg

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Abstract

In this paper we investigate the effect of mediated partnerships over agents’ equilibrium strategies in two-sided economic search. A

mediated partnership

is formed when an agent acts as a mediator, establishing a partnership between a pair of agents it encountered along its search, thereby reducing the other agents’ amount of search. Surprisingly, this reduction in market friction induced by mediated partnerships does not always improve market efficiency. Use of mediated partnerships changes the equilibrium strategies used by agents in two-sided search models and introduces substantial computational complexity. This computational complexity is overcome with an innovative algorithm that facilitates equilibrium calculation.

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Metadata
Title
The Effect of Mediated Partnerships in Two-Sided Economic Search
Authors
Philip Hendrix
David Sarne
Copyright Year
2007
Publisher
Springer Berlin Heidelberg
Book
Cooperative Information Agents XI

Print ISBN: 978-3-540-75118-2

Electronic ISBN: 978-3-540-75119-9

Copyright Year: 2007

DOI
https://doi.org/10.1007/978-3-540-75119-9_16

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