Auctions with entry and resale

B-Tier
Journal: Games and Economic Behavior
Year: 2013
Volume: 79
Issue: C
Pages: 92-105

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study how resale affects auctions with costly entry in a model where bidders possess two-dimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our analysis suggests that the opportunity of resale affects both entry and bidding, and, in particular, it induces motivation for speculative entry and resale hunting abstentions. Our numerical results suggest that while expected entry is higher when resale is allowed, the effects of resale on expected revenue and efficiency are both ambiguous.

Technical Details

RePEc Handle
repec:eee:gamebe:v:79:y:2013:i:c:p:92-105
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25