No-trade in second-price auctions with entry costs and secret reserve prices

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 156
Issue: C
Pages: 142-144

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We consider a second-price private-value auction in the presence of an exogenous participation cost and a secret reserve price endogenously set by the seller. We show that, if the entry cost is strictly positive, the only equilibrium outcome is that the seller chooses a reserve price that deters entry and no buyer enters.

Technical Details

RePEc Handle
repec:eee:ecolet:v:156:y:2017:i:c:p:142-144
Journal Field
General
Author Count
2
Added to Database
2026-01-25