TY  - BOOK
AU  - Dalakoti,Harshika
TI  - Bilateral trade and partnership with loss averse agents
U1  - H324 23
PY  - 2023///
CY  - Delhi
PB  - Indian Statistical Institute
KW  - Economics
KW  - Bilateral partnership
N1  - Thesis (Ph.D.)- Indian statistical Institute, 2023; Includes bibliography; Dissolving a Bilateral Partnership -- Optimal Dissolution Mechanisms -- Efficient Dissolution Mechanisms; Guided by Prof. Debasis Mishra
N2  - This thesis consists of three essays on bilateral trading and partnership with loss averse
agents. All the three essays consider the same model where two loss averse agents (Tversky
and Kahneman (1991), K ̈oszegi and Rabin (2006)) hold some shares of an asset and now
wants to dissolve the partnership. The first chapter shows the impossibility result for loss averse agents i.e. there does
not exist a feasible, incentive compatible and individually rational mechanism which can
implement an efficient outcome. The second chapter talks about the dissolution mechanism
intermediated by a broker which is optimum in a sense different than ex-post efficiency.

Set of all optimal mechanisms are characterised for the bilateral trade as well as partner-
ship model. The third chapter shows non-existence of a dissolution mechanism which is

incentive-compatible, interim individually rational, budget-balanced and efficient for equal
share partnership when the degree of loss aversion exceeds a cut off, which is in contrast to
Cramton et al. (1987) result
UR  - http://dspace.isical.ac.in:8080/jspui/handle/10263/7459
ER  -