Abstract

http://ssrn.com/abstract=130188
 
 

References (14)



 
 

Citations (10)



 
 

Footnotes (4)



 


 



Scale Economies and the Dynamics of Recurring Auctions


Elmar Wolfstetter


Humboldt University of Berlin - Faculty of Economics; Korea University - College of Economics and Commerce

Thomas D. Jeitschko


Michigan State University - Department of Economics

July 1998


Abstract:     
We analyze the dynamics of a game of sequential bidding in the presence of stochastic scale effects in the form of stochastic economies or diseconomies of scale. We show that economies give rise to declining expected equilibrium prices, whereas the converse is not generally true. Moreover, first- and second-price auctions are not always revenue equivalent. Indeed, economies of scale make the second-price format more profitable for the seller, whereas revenue equivalence is preserved in the case of diseconomies.

Number of Pages in PDF File: 17

JEL Classification: D44

working papers series


Download This Paper

Date posted: October 29, 1998  

Suggested Citation

Wolfstetter, Elmar and Jeitschko, Thomas D., Scale Economies and the Dynamics of Recurring Auctions (July 1998). Available at SSRN: http://ssrn.com/abstract=130188 or http://dx.doi.org/10.2139/ssrn.130188

Contact Information

Elmar G. Wolfstetter
Humboldt University of Berlin - Faculty of Economics ( email )
Institut für Wirtschaftstheorie I
Spandauer Strasse 1
Berlin
Germany
+49 30 2093 5652/3 (Phone)
+49 30 2093 5619 (Fax)
HOME PAGE: http://www.wiwi.hu-berlin.de/wt1/
Korea University - College of Economics and Commerce ( email )
Anam-dong, Sungbuk-Ku
Seoul, 136-701
Korea
Thomas D. Jeitschko (Contact Author)
Michigan State University - Department of Economics ( email )
110 Marshall-Adams Hall
East Lansing, MI 48824
United States
517-355-8302 (Phone)
517-432-1068 (Fax)
HOME PAGE: http://www.msu.edu/~jeitschk/
Feedback to SSRN


Paper statistics
Abstract Views: 2,106
Downloads: 455
Download Rank: 34,335
References:  14
Citations:  10
Footnotes:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.265 seconds