Abstract

Allowing for a reserve price in a dynamic auction with capacity-constrained bidders changes the equilibrium in an unexpected way. The distribution of winning bids contains a mass point; several bidder types “bunch” at the reserve price.

Publisher

Elsevier

Publication Date

9-1-2010

Publication Title

Economics Letters

Department

Economics

Document Type

Article

DOI

10.1016/j.econlet.2010.05.024

Keywords

Dynamic auction, Capacity constraint, Reserve price, Economics

Document Version

post-print

Language

English

Format

text

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