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A note on Peters and Severinov, “Competition among sellers who offer auctions instead of prices”

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  • Albrecht, James
  • Gautier, Pieter
  • Vroman, Susan

Abstract

We consider a market in which sellers compete for buyers by advertising reserve prices for second-price auctions. Applying the limit equilibrium concept developed in Peters and Severinov (1997) [1], we show that the competitive matching equilibrium is characterized by a reserve price of zero. This corrects a result in Peters and Severinov (1997) [1].

Suggested Citation

  • Albrecht, James & Gautier, Pieter & Vroman, Susan, 2012. "A note on Peters and Severinov, “Competition among sellers who offer auctions instead of prices”," Journal of Economic Theory, Elsevier, vol. 147(1), pages 389-392.
    • Handle: RePEc:eee:jetheo:v:147:y:2012:i:1:p:389-392
    DOI: 10.1016/j.jet.2011.11.014
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    References listed on IDEAS

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    1. Peters, Michael & Severinov, Sergei, 1997. "Competition among Sellers Who Offer Auctions Instead of Prices," Journal of Economic Theory, Elsevier, vol. 75(1), pages 141-179, July.
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    More about this item

    Keywords

    Competing auctions; Directed search;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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