Endogenous Preemption on Both Sides of a Market
CentER Discussion Paper No. 2005-92
9 Pages Posted: 27 Sep 2005
Date Written: August 2005
We study a market in which both buyers and sellers can decide to preempt and set their quantities before market clearing. Will this lead to preemption on both sides of the market, only one side of the market, or to no preemption at all? We find that preemption tends to be asymmetric in the sense that it is restricted to only one side of the market (buyers or sellers).
Keywords: preemptio,; endogenous timing
JEL Classification: C72, D43, L11
Suggested Citation: Suggested Citation