On Second Price Auctions and Imperfect Competition

Patrick Schmitz

No 3774, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Consider two sellers each of whom has one unit of an indivisible good and two buyers each of whom is interested in buying one unit. The sellers simultaneously set reserve prices and use second price auctions as rationing device. An equilibrium in pure strategies where each sellers has a regular customer is characterized. The result is applied in order to demonstrate that not allowing sellers to use second price auctions may enhance total surplus.

Keywords: Auctions; Duopoly; Selling mechanisms; Private information (search for similar items in EconPapers)
JEL-codes: D43 D44 D82 (search for similar items in EconPapers)
Date: 2003-02
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Citations: View citations in EconPapers (5)

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Journal Article: On second-price auctions and imperfect competition (2003)
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