Competing Auctions

59 Pages Posted: 15 Aug 2002

See all articles by Drew Fudenberg

Drew Fudenberg

Massachusetts Institute of Technology (MIT)

Glenn Ellison

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: February 7, 2002

Abstract

This paper studies the conditions under which two competing and otherwise identical markets or auction sites of different sizes can coexist in equilibrium, without the larger one attracting all of the smaller one's patrons. We find that the range of equilibrium market sizes depends on the aggregate buyer-seller ratio, and also whether the markets are especially "thin."

Suggested Citation

Fudenberg, Drew and Ellison, Glenn David, Competing Auctions (February 7, 2002). Available at SSRN: https://ssrn.com/abstract=323740 or http://dx.doi.org/10.2139/ssrn.323740

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