Voluntary trade is often beneficial for both traders. If you buy an apple at the farmer's market, hopefully both you and the farmer are better off after trading at whatever price you pay. This paper* asks how the benefits from trade get split among the traders. Who got the better deal, you or the farmer?
One thing that affects this is bargaining power. In this paper, bargaining power is determined by the number of other trading opportunities a particular trader has. If there is one farmer with one apple at a stall and two hungry buyers, it is natural to think the farmer has more bargaining power.
This paper formalizes the intuition that more trading opportunities often increase a trader's bargaining power, and thereby increase her share of the benefits from trade.
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