Asymmetric Auctions with Resale

S-Tier
Journal: American Economic Review
Year: 2008
Volume: 98
Issue: 1
Pages: 87-112

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We study first- and second-price auctions with resale in a model with independent private values. With asymmetric bidders, the resulting ineffi ciencies create a motive for post-auction trade which, in our model, takes place via monopoly pricing—the winner makes a take-it-or-leave-it offer to the loser. We show (a) a first-price auction with resale has a unique monotonic equilibrium; and (b) with resale, the expected revenue from a first-price auction exceeds that from a second-price auction. The inclusion of resale possibilities thus permits a general revenue ranking of the two auctions that is not available when these are excluded. (JEL D44)

Technical Details

RePEc Handle
repec:aea:aecrev:v:98:y:2008:i:1:p:87-112
Journal Field
General
Author Count
2
Added to Database
2026-01-25