Economic and Game Theory
|"Inside every small problem is a large problem struggling to get out."|
Thread and Full Text View
The issue involves a series of transactions that are finite in duration and involve potentially dissimilar offerings between sessions. On one hand there are buyers who have current knowledge of price and demand. On the other hand, there are sellers, who can potentially change from session to session, who also have current knowledge of price and demand. However, neither party has knowledge of who is on the other side of the transaction. The transaction starts with an opening bid from a seller and progresses with Buyers entering the market at the current price with the motivation to bring other buyers in so that their collective actions may induce another seller participant to make a pricing move downward. The cycle continues with demand generation that is fueled by pricing decisions and ends because of either a time constraint or quantity limitation.
Do you have a suggested direction where I can find research on a game theory model that approximates this transaction? Do you have any resources that you would direct me towards that explain the motivations and dynamics at a more thorough level?
Thank you in advance!