Auctions with entry and resale

Xiaoshu Xu, Dan Levin () and Lixin Ye ()

Games and Economic Behavior, 2013, vol. 79, issue C, 92-105

Abstract: We study how resale affects auctions with costly entry in a model where bidders possess two-dimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our analysis suggests that the opportunity of resale affects both entry and bidding, and, in particular, it induces motivation for speculative entry and resale hunting abstentions. Our numerical results suggest that while expected entry is higher when resale is allowed, the effects of resale on expected revenue and efficiency are both ambiguous.

Keywords: Auctions; Auctions with resale; Auctions with entry (search for similar items in EconPapers)
JEL-codes: D40 D44 D80 D82 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:79:y:2013:i:c:p:92-105

DOI: 10.1016/j.geb.2013.01.006

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