|Publication type:||Article in scientific journal|
|Type of review:||Peer review (publication)|
|Title:||Auctions with variable supply : uniform price versus discriminatory|
|Authors:||Damianov, Damian S.|
Becker, Johannes Gerd
|Published in:||European Economic Review|
|Publisher / Ed. Institution:||Elsevier|
|Subject (DDC):||658.8: Marketing management|
|Abstract:||We examine an auction in which the seller determines the supply after observing the bids. We compare the uniform price and the discriminatory auction in a setting of supply uncertainty. Uncertainty is caused by the interplay of two factors: the seller's private information about marginal cost, and the seller's incentive to sell the profit-maximizing quantity given the received bids. In every symmetric mixed strategy equilibrium, bidders submit higher bids in the uniform price auction than in the discriminatory auction. In the two-bidder case this result extends to the set of rationalizable strategies. As a consequence, we find that the uniform price auction generates higher expected revenue for the seller and higher trade volume|
|Fulltext version:||Published version|
|License (according to publishing contract):||Licence according to publishing contract|
|Departement:||School of Management and Law|
|Appears in Collections:||Publikationen School of Management and Law|
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.