On Second Price Auctions and Imperfect Competition
14 Pages Posted: 25 Nov 2007
There are 3 versions of this paper
On Second Price Auctions and Imperfect Competition
On Second Price Auctions and Imperfect Competition
Date Written: April 2008
Abstract
Consider two sellers each of whom has one unit of an indivisible good and two buyers each of whom is interested in buying one unit. The sellers simultaneously set reserve prices and use second price auctions as rationing device. An equilibrium in pure strategies where each seller has a regular customer is characterized. The result is applied in order to demonstrate that not allowing sellers to use second price auctions may enhance total surplus.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Revelation and Delegation Principles in Common Agency Games
By David Martimort and Lars Stole
-
Contractual Externalities and Common Agency Equilibria
By David Martimort and Lars Stole
-
Strategic Tax Competition; Implications of National Ownership
By Trond E. Olsen and Petter Osmundsen
-
Multiple Lending and Constrained Efficiency in the Credit Market
By Andrea Attar, Eloisa Campioni, ...
-
Truthful Revelation Mechanisms for Simultaneous Common Agency Games
-
By Fahad Khalil, David Martimort, ...
-
Common Agency Equilibria with Discrete Mechanisms and Discrete Types
By David Martimort and Lars Stole