1993/01/01 by Gary Biglaiser · 5 citations
Economics, Econometrics and Finance · #Economic theories and models #Game Theory and Voting Systems #Merger and Competition Analysis
paper · doi:10.2307/2555758
openalex publication_date 1993/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29
I show that a middleman can be welfare improving in all equilibria in a quite general bargaining model when adverse selection is present. Conditions are determined for when a middleman is most likely to be in a market. Examples of the theory are also presented.