Resale and bundling in auctions

B-Tier
Journal: International Journal of Industrial Organization
Year: 2009
Volume: 27
Issue: 6
Pages: 667-678

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

The possibility of resale increases bidders' incentives to jointly reduce demand in multi-object auctions, because resale increases low-value bidders' willingness to pay and reduces high-value bidders' willingness to pay. Therefore, resale may reduce the seller's revenue. In a simple model with complete information, however, allowing resale and bundling the objects on sale are "complement strategies" for the seller (under reasonable conditions)--by bundling and allowing resale the seller earns a higher revenue than by selling the objects separately and/or forbidding resale. We also show why allowing resale may reduce efficiency.

Technical Details

RePEc Handle
repec:eee:indorg:v:27:y:2009:i:6:p:667-678
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-28