Prices and the Winners Curse
AbstractWe usually assume increases in supply, allocation by rationing, and exclusion of potential buyers will never raise prices. But all of these activities raise the expected price in an important set of cases when common-value assets are sold. Furthermore, when we make the assumptions needed to rule out these anomalies when buyers are symmetric, small asymmetries among the buyers necessarily cause the anomalies to reappear.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 1998-W02.
Date of creation: 01 May 1998
Date of revision:
Auction theory; common value; winners curse; PCS auction; spectrum auction; airwaves auction; initial public offerings; IPO;
Other versions of this item:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
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