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First-Price and Second-Price Auctions with Resale

Author

Listed:
  • Bernard Lebrun

    (Department of Economics, York University)

Abstract

We add a resale stage to standard auctions with two bidders. Bids are either kept secret or made public. Either the auction winner or the auction loser chooses the resale price. We characterize an infinity of equilibria of the second-price auction and a unique equilibrium of the first-price auction. For every equilibrium of an auction without bid disclosure, we construct an outcome-equivalent and, in the case of the second-price auction, “posterior implementable” equilibrium of the auction with bid disclosure. We compare the revenues from the two auctions and from the two bargaining procedures at resale

Suggested Citation

  • Bernard Lebrun, 2006. "First-Price and Second-Price Auctions with Resale," Working Papers 2006_5, York University, Department of Economics.
    • Handle: RePEc:yca:wpaper:2006_5
    as

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    File URL: http://dept.econ.yorku.ca/research/workingPapers/working_papers/2006/auctres-wp-lebrun.pdf
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    References listed on IDEAS

    as
    1. Haile, Philip A., 2000. "Partial Pooling at the Reserve Price in Auctions with Resale Opportunities," Games and Economic Behavior, Elsevier, vol. 33(2), pages 231-248, November.
    2. Subir Bose & George Deltas, 2007. "Exclusive Versus Non-exclusive Dealing in Auctions with Resale," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 1-17, April.
    3. Rod Garratt & Thomas Tröger, 2006. "Speculation in Standard Auctions with Resale," Econometrica, Econometric Society, vol. 74(3), pages 753-769, May.
    4. Giacomo Calzolari & Alessandro Pavan, 2006. "Monopoly with resale," RAND Journal of Economics, RAND Corporation, vol. 37(2), pages 362-375, June.
    5. Haile, Philip A., 2003. "Auctions with private uncertainty and resale opportunities," Journal of Economic Theory, Elsevier, vol. 108(1), pages 72-110, January.
    6. Gupta, Madhurima & Lebrun, Bernard, 1999. "First price auctions with resale," Economics Letters, Elsevier, vol. 64(2), pages 181-185, August.
    7. Haile,P.A., 1999. "Auctions with resale," Working papers 33, Wisconsin Madison - Social Systems.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Auctions; resale;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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