Article ID Journal Published Year Pages File Type
957169 Journal of Economic Theory 2011 13 Pages PDF
Abstract
We study auctions with resale based on Hafalir and Krishna's (2008) [6] model. As predicted, weak bidders bid more with resale than without, so that average auction prices tend to increase. When the equilibrium calls for weak types to bid higher than their values with resale they do, but not nearly as much as the theory predicts. In other treatments outcomes are much closer to the risk neutral Nash model's predictions. Bid distributions for weak and strong types are more similar with resale than without, in line with the theory.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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