Markets as communication systems: Simulating and assessing the performance of market networks

As the information relative to endowments, costs and preferences is dispersed among many agents, the quality of resource allocation depends on the ability of markets to communicate information inside the economic system. Because information is transferred through negotiation and transaction behaviors, the network of trading relations defines the channels through which it flows. In the present study, we use new computational tools to analyze the performance of two wholesale trade institutions widely used around the world: network trading and marketplace trading. Whilst network trading and marketplace trading disseminate far fewer bits of information than a perfectly transparent benchmark market, they often manage to generate an allocation of resources that is almost as good. In many cases, network trading proves more.

Bibliographic Details

Main Authors:	Galtier, Franck, Bousquet, François, Antona, Martine, Bommel, Pierre
Format:	article biblioteca
Language:	eng
Subjects:	E70 - Commerce, commercialisation et distribution, U10 - Informatique, mathématiques et statistiques, marché, service d'information marchés, information sur le marché, marketing, analyse de système, modèle de simulation, application des ordinateurs, http://aims.fao.org/aos/agrovoc/c_4626, http://aims.fao.org/aos/agrovoc/c_36525, http://aims.fao.org/aos/agrovoc/c_4617, http://aims.fao.org/aos/agrovoc/c_4620, http://aims.fao.org/aos/agrovoc/c_7581, http://aims.fao.org/aos/agrovoc/c_24242, http://aims.fao.org/aos/agrovoc/c_24009,
Online Access:	http://agritrop.cirad.fr/562689/ http://agritrop.cirad.fr/562689/1/document_562689.pdf
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