Conclusions And Future Work
In this paper we considered non-cooperative local bargaining over a trading network with
a single type of good. In the limiting scenario of many agents, we showed the existence of
a limit stationary equilibrium that can be characterized by a combination of the stationary
probability of a trade happening on each link, the stationary distribution of the agents’
possessing the good, and the stationary payoffs of the agents. We then showed that when
agents are patient enough, this limiting equilibrium can exhibit global efficiency. We applied
this concept to several simple network structures to study the impact of the network on the
bargaining power and surplus of all agents. In future work we plan to extend the results
to more general networks, to include the analysis of losing or damaging the good and to
rigorously connect the equilibria in the finite-player game to the limit stationary equilibria.