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Printresale markets
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
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Abstract
Resale markets are necessary to correct misallocations of assets, but do they always ensure that goods end up in the hands of those who value them most? This article reviews theoretical arguments as to why this need not necessarily be so and when inefficiencies might be expected despite the presence of resale markets. Policy implications are also suggested.
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Keywords
Akerlof, G.; allocative externalities; asymmetric information; auctions; bargaining; Chicago School; Coase Theorem; commitment; efficient allocation; incentive constraints; interdependent values; limited liability; market failure; market imperfections; mechanism design; participation constraints; private information; property rights allocation; resale markets; reservation utility; revelation principle; risk aversion; transferabilityBack to top
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How to cite this article
Jehiel, Philippe. "resale markets." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 02 September 2010 <http://www.dictionaryofeconomics.com/article?id=pde2008_R000244> doi:10.1057/9780230226203.1425
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