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Title: Can resale harm the original seller in a second-price auction?
Authors: Akyol, Ethem
Keywords: Second-price auctions
Participation cost
Expected revenue
Issue Date: 2021
Publisher: Elsevier Science Sa
Abstract: We consider second-price auctions with participation costs and investigate the revenue effects of a resale possibility. There are two potential bidders whose valuations are independently and identically distributed, and each bidder must incur a participation cost to bid in the auction. Due to these costs, there may be a resale opportunity in an otherwise efficient second-price auction. We show that when values are drawn from a uniform distribution, resale increases (decreases) entry of the lower-(higher-)cost bidder and decreases the original seller's expected revenue. (C) 2021 Elsevier B.V. All rights reserved.
ISSN: 0165-1765
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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