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Discriminatory Auctions with Resale

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  • Hafalir Isa
  • Kurnaz Musab

Abstract

We consider multi-unit discriminatory auctions where ex-ante symmetric bidders have single-unit demands and resale is allowed after the bidding stage. When bidders use the optimal auction to sell the items in the resale stage, the equilibrium without resale is not an equilibrium. We find a symmetric and monotone equilibrium when there are two units for sale, and, interestingly, show that there may not be a symmetric and monotone equilibrium if there are more than two units.

Suggested Citation

  • Hafalir Isa & Kurnaz Musab, "undated". "Discriminatory Auctions with Resale," GSIA Working Papers 2015-E12, Carnegie Mellon University, Tepper School of Business.
  • Handle: RePEc:cmu:gsiawp:1153281920
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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