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Strategic price discounting and rationing in uniform price auctions

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  • Bourjade, Sylvain

Abstract

I modify the uniform-price auction rules in allowing the seller to ration bidders. This allows me to provide a strategic foundation for underpricing when the seller has an interest in ownership dispersion. Moreover, many of the so-called "collusive-seeming" equilibria disappear.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 105 (2009)
Issue (Month): 1 (October)
Pages: 23-27

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Handle: RePEc:eee:ecolet:v:105:y:2009:i:1:p:23-27

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Uniform price auctions Rationing Uncertainty Initial public offerings;

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