Strategic Models of Intermediation Networks

Galeotti, A and Condorelli, D (2016) Strategic Models of Intermediation Networks. In: The Oxford Handbook of the Economics of Networks. Oxford University Press, Oxford. ISBN 9780199948277

Abstract

This chapter surveys a set of papers that analyze strategic intermediation in networks. In all these papers, the architecture of the network has an impact on how surplus is shared across trading parties by determining the level of competition and outside options of traders,. The chapter emphasizes the insights that are most recurrent in the literature.