Internet auctions with a temporary buyout option
AbstractIn an Internet auction, bidders sequentially decide whether or not to enter, and each bidder has to pay a participation cost. In this paper we model an Internet auction with a temporary buyout option. Our main result shows that under certain condition, offering a temporary buyout price would encourage entry of risk neutral bidders, and hence enable the seller to increase expected payoff.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18444.
Date of creation: 11 Jun 2009
Date of revision:
Internet auction; temporary buyout option;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
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