Competing Auction Houses
AbstractWe consider a model where sellers make repeated attempts to sell an object via two competing auction houses. An auction house that attracts a seller runs a Vickrey auction among a random sample of buyers and collects two fees: a listing fee and, if the object is sold, a closing fee. We characterize equilibria and show that two equilibrium outcomes are possible: a (contestable) monopoly, and a market segmentation between the two competitors.
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Bibliographic InfoPaper provided by Kyiv School of Economics in its series Discussion Papers with number 17.
Date of creation: Apr 2009
Date of revision: Mar 2010
Note: Under review in Games and Economic Behavior
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Competing auctions; mediator; listing fee; closing fee;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-COM-2009-06-03 (Industrial Competition)
- NEP-CTA-2009-06-03 (Contract Theory & Applications)
- NEP-GTH-2009-06-03 (Game Theory)
- NEP-MIC-2009-06-03 (Microeconomics)
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