IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2007-23.html
   My bibliography  Save this paper

On the Comparative Statics of the Optimal Reserve Price : A Comment on "Reserve price Signaling"

Author

Listed:
  • Laurent Lamy

    (Crest)

Abstract

This comment finds an error in Cai, Riley and Ye [2] in presenceof informational externalities between bidders, the correction of whichgives a broader view on their comparative statics results with respectto n, the number of bidders. A linear specification of the informationalexternalities between bidders is analyzed. In contrast to their claim,the reserve price of the lowest type sellers is shown to be decreasing inn. We establish that the participation threshold is still increasing in nfor high type sellers confirming their main insight. Nevertheless, it isthe opposite comparative statics that holds for the reserve price.

Suggested Citation

  • Laurent Lamy, 2007. "On the Comparative Statics of the Optimal Reserve Price : A Comment on "Reserve price Signaling"," Working Papers 2007-23, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2007-23
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2007-23.pdf
    File Function: Crest working paper version
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2007-23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sri Srikandan). General contact details of provider: http://edirc.repec.org/data/crestfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.