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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Hendrix, P., Sarne, D. (2007). The Effect of Mediated Partnerships in Two-Sided Economic Search. In: Klusch, M., Hindriks, K.V., Papazoglou, M.P., Sterling, L. (eds) Cooperative Information Agents XI. CIA 2007. Lecture Notes in Computer Science(), vol 4676. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-75119-9_16
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DOI: https://doi.org/10.1007/978-3-540-75119-9_16
Publisher Name: Springer, Berlin, Heidelberg
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