# Consider a trading network with intermediaries in which there are two sellers S1 and S2, three…

(a) Draw the trading network, with the traders as squares, the buyers and the sellers as circles, and edges representing pairs of people who are able to trade with each other. Label each node as S1, S2, B1, B2, B3, T1, or T2.

(b) Suppose the prices and the flow of goods are as follows:

Trader T1 offers a bid price of 1 to each seller, an ask price of 1 to B1, and an ask price of 2 to B2.

Trader T2 offers a bid price of 1 to each seller, an ask price of 2 to B2, and an ask price of 3 to B3.

One unit of the good flows from seller S1 to buyer B2 through trader T1 and one unit of the good flows from seller S2 to buyer B3 through trader T2.

(If it is useful, it is okay to write these prices and this flow of goods on the picture you drew for part (a), provided the picture itself is still clear.) Do these prices and this flow of goods form a Nash equilibrium? If you think the answer is yes, give a brief (one- to three-sentence) explanation. If you think the answer is no, describe a way in which one of the traders could change its prices so as to increase its profit.

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend