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An optimal slow Dutch auction

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  • Artyom Shneyerov

Abstract

We study slow Dutch auctions, where the clock does not fall instantaneously, but instead falls over time. Buyers are assumed less patient than the seller. In a symmetric setting, we investigate the properties of the optimal revenue-maximizing clock. We find that the clock is genuinely dynamic and the auction involves delays. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Artyom Shneyerov, 2014. "An optimal slow Dutch auction," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 57(3), pages 577-602, November.
    • Handle: RePEc:spr:joecth:v:57:y:2014:i:3:p:577-602
    DOI: 10.1007/s00199-014-0825-z
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    References listed on IDEAS

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    Cited by:

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    3. Tóbiás, Áron, 2018. "Non-linear pricing and optimal shipping policies," Games and Economic Behavior, Elsevier, vol. 112(C), pages 194-218.

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    More about this item

    Keywords

    Dynamic auctions; Optimal control; D44; D82;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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