Uniform-Price Auctions with Adjustable Supply

Posted: 14 Jan 2008

See all articles by David McAdams

David McAdams

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA)

Multiple version iconThere are 2 versions of this paper


In some uniform price auctions, the auctioneer retains flexibility to adjust the total quantity sold after receiving the bids. Would such an auctioneer be better off committing to a fixed quantity and reserve price? Not necessarily. In the simplest possible model, this paper shows that auctioneer expected profit and social welfare are each strictly higher in all equilibria given adjustable supply than in all equilibria given any fixed quantity and reserve price.

Keywords: Uniform-price auction, Adjustable supply

JEL Classification: D44

Suggested Citation

McAdams, David, Uniform-Price Auctions with Adjustable Supply. Economics Letters, Vol. 95, pp. 48-53, 2007, MIT Sloan Research Paper No. 4618-06, Available at SSRN: https://ssrn.com/abstract=1083688

David McAdams (Contact Author)

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA) ( email )

77 Massachusetts Avenue
Cambridge, MA 02139-4307
United States
617-253-1306 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics