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Competition among Sellers Who Offer Auctions Instead of Prices

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  • Peters, Michael
  • Severinov, Sergei

Abstract

In this paper we study a large market in which sellers compete by offering auctions to buyers instead of simple fixed price contracts. Two variants of the model are studied. One extends a model first analyzed by Wolinsky (1988) in which buyers learn their valuations only after meeting sellers. The other variant extends the model of McAfee (1993) in which buyers know their valuations before they choose among available auctions. The equilibrium array of auctions is characterized for each case and the efficiency properties of the equilibria are analyzed.
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Suggested Citation

  • 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.
  • Handle: RePEc:eee:jetheo:v:75:y:1997:i:1:p:141-179
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    References listed on IDEAS

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    1. McAfee, R. Preston & McMillan, John, 1987. "Auctions with a stochastic number of bidders," Journal of Economic Theory, Elsevier, vol. 43(1), pages 1-19, October.
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    5. Riley, John G & Samuelson, William F, 1981. "Optimal Auctions," American Economic Review, American Economic Association, vol. 71(3), pages 381-392, June.
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    8. Wilson, Robert B, 1985. "Incentive Efficiency of Double Auctions," Econometrica, Econometric Society, vol. 53(5), pages 1101-1115, September.
    9. McAfee, R Preston, 1993. "Mechanism Design by Competing Sellers," Econometrica, Econometric Society, vol. 61(6), pages 1281-1312, November.
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    13. Maskin, Eric S & Riley, John G, 1984. "Optimal Auctions with Risk Averse Buyers," Econometrica, Econometric Society, vol. 52(6), pages 1473-1518, November.
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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