Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072078 | Games and Economic Behavior | 2013 | 14 Pages |
Abstract
⺠We study how resale affects auctions with costly entry where bidders possess two-dimensional private types: entry costs and valuations. ⺠We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. ⺠The opportunity of resale affects both entry and bidding; it induces motivation for speculative entry and resale hunting abstentions. ⺠The effects of resale on expected revenue and efficiency are both ambiguous.
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Authors
Xiaoshu Xu, Dan Levin, Lixin Ye,