Dependence in Private Values and Efficiency in

Dependence in Private Values and Efficiency in Bilateral Trade. Georgia Kosmopoulou University of Oklahoma

Abstract In a bargaining model with dependent private information, I extend the result on existence of efficient mechanisms allowing any distribution of the surplus among traders. This generalization introduces flexibility into the model since full surplus extraction by one trader is incompatible with ex post individual rationality.

I would like to thank an associate editor of this Journal for helpful comments. Citation: Kosmopoulou, Georgia, (2001) "Dependence in Private Values and Efficiency in Bilateral Trade.." Economics Bulletin, Vol. 3, No. 9 pp. 1−7 Submitted: July 26, 2001. Accepted: August 15, 2001. URL: http://www.economicsbulletin.com/2001/volume3/EB−01C70008A.pdf


 

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