On Internet-based Trade and shared Surplus

Abstract This paper seeks to shed some light on elementary market dynamics. For focus and simplicity, it restricts attention to trade of just one private good - presumed perfectly divisible, homogenous, inspectable and transferable. Deals are money-based and driven by orders as to acceptable price-quantity pairs. Essentially, like on internet-designed platforms, each transaction is anonymous, bilateral, ”computerized” , decentralized and discrete. Moreover, nobody ever accepts any setback, and trade unfolds step by step. The paper connects differential properties of economic margins - via agents’ market behavior and communication - to attainment and stability of competitive equilibrium.