Internet Auctions with a Temporary Buyout Option
AbstractWe model an Internet auction with a temporary buyout option. Our main result shows that under certain parameter values, there exist two types of equilibria where offering a temporary buyout option with an appropriate reserve price enables the seller to increase expected revenue.
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Bibliographic InfoPaper provided by University of Sydney, School of Economics in its series Working Papers with number 2010-07.
Date of creation: Dec 2010
Date of revision:
Internet auctions; temporary buyout option; entry cost;
Other versions of this item:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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