Competitive Externalities in Dynamic Monopolies with Stochastic Demand

Walter Beckert ()

The B.E. Journal of Theoretical Economics, 2006, vol. 6, issue 1, 14

Abstract: This paper analyzes equilibria in sequential take-it-or-leave-it sales when demand is stochastic. It is shown that equilibria in this sales mechanism, unlike in sequential auctions, trade-off allocative efficiency and competing buyers' opportunities to acquire an item to be sold, permitting prices and expected revenue above those of one-shot offers. Hence Coase-type conjectures are invalid in this setting.

Keywords: dynamic monopoly; stochastic demand; Coase conjecture (search for similar items in EconPapers)
Date: 2006
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DOI: 10.2202/1534-598X.1330

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