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Auctions with entry and resale

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Author Info

  • Xu, Xiaoshu
  • Levin, Dan
  • Ye, Lixin
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Abstract

We study how resale affects auctions with costly entry in a model where bidders possess two-dimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our analysis suggests that the opportunity of resale affects both entry and bidding, and, in particular, it induces motivation for speculative entry and resale hunting abstentions. Our numerical results suggest that while expected entry is higher when resale is allowed, the effects of resale on expected revenue and efficiency are both ambiguous.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 79 (2013)
Issue (Month): C ()
Pages: 92-105

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Handle: RePEc:eee:gamebe:v:79:y:2013:i:c:p:92-105

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Web page: http://www.elsevier.com/locate/inca/622836

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Keywords: Auctions; Auctions with resale; Auctions with entry;

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References

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  1. Marco Pagnozzi, 2004. "Bidding to Lose? Auctions with Resale," CSEF Working Papers 116, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Nov 2006.
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Cited by:
  1. Todd R. Kaplan & Shmuel Zamir, 2014. "Advances in Auctions," Discussion Papers 1405, Exeter University, Department of Economics.

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