Transition dynamics in equilibrium search

Name: Transition dynamics in equilibrium search
Author: Akın, Şerife Nuray, Platt, B. C.

İsim	Transition dynamics in equilibrium search
Yazar	Akın, Şerife Nuray, Platt, B. C.
Basım Tarihi:	2022
Basım Yeri	- American Economic Association
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1945-7669
Kayıt Numarası	63db1b63-a58d-4657-a7bd-a700adea7397
Lokasyon	Economics
Tarih	2022
Örnek Metin	We study a dynamic equilibrium search model where sellers differ in their urgency to liquidate an asset. Buyers strategically make price offers without knowing a given seller’s urgency. We study liquidity and price dynamics on the transition path after an unexpected shock. Generically, the transition includes a phase where all buyers offer the same price, causing a market collapse; however, price dispersion resumes in finite time, leading to a recovery where both types make sales. We show that prices and liquidity can overshoot before converging to the steady state. When relaxed sellers randomly become desperate, dampening oscillations can occur.
DOI	10.1257/mic.20200227
Cilt	14

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Transition dynamics in equilibrium search

Yazar Akın, Şerife Nuray, Platt, B. C.

Basım Tarihi 2022

Basım Yeri - American Economic Association

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1945-7669

Kayıt Numarası 63db1b63-a58d-4657-a7bd-a700adea7397

Lokasyon Economics

Tarih 2022

Örnek Metin We study a dynamic equilibrium search model where sellers differ in their urgency to liquidate an asset. Buyers strategically make price offers without knowing a given seller’s urgency. We study liquidity and price dynamics on the transition path after an unexpected shock. Generically, the transition includes a phase where all buyers offer the same price, causing a market collapse; however, price dispersion resumes in finite time, leading to a recovery where both types make sales. We show that prices and liquidity can overshoot before converging to the steady state. When relaxed sellers randomly become desperate, dampening oscillations can occur.

DOI 10.1257/mic.20200227

Cilt 14