Adam Wierman: "Networked Markets: Intermediaries & Market Power (2)"
Adam Wierman - California Institute of Technology, Computer Science
Classical models of competition focus on a single, centralized marketplace in which the identity of players has no effect on the prices, outcomes, etc. However, often the marketplace is not really a single market, but is instead a network of interconnected markets loosely defined by a graph of feasible exchanges, e.g., electricity markets are constrained by underlying power grid. In this talk, I will overview recent advances in the study of networked markets, focusing on networked Bertrand, Cournot, and Stackleberg competition. My focus will be on the role of intermediaries and the identification and curtailment of market power in such marketplaces, and I will use the context of electricity markets to highlight the importance of such insights.