On Second Price Auctions and Imperfect Competition

15 Pages Posted: 28 Mar 2003

See all articles by Patrick W. Schmitz

Patrick W. Schmitz

University of Cologne; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: February 2003

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 sellers 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.

Keywords: Auctions, duopoly, selling mechanisms, private information

JEL Classification: D43, D44, D82

Suggested Citation

Schmitz, Patrick W., On Second Price Auctions and Imperfect Competition (February 2003). CEPR Discussion Paper No. 3774. Available at SSRN: https://ssrn.com/abstract=390665

Patrick W. Schmitz (Contact Author)

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

HOME PAGE: http://schmitz.uni-koeln.de/index.php?s=mitarbeiter&t=schmitz

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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