Tilting the Supply Schedule to Enhance Competition in Uniform- Price Auctions

Marco LiCalzi and Alessandro Pavan

Game Theory and Information from University Library of Munich, Germany

Abstract: Uniform-price auctions of a divisible good in fixed supply admit underpricing equilibria, where bidders submit high inframarginal bids to prevent competition on prices. The seller can obstruct this behavior by tilting her supply schedule and making the amount of divisible good on offer change endogenously with its (uniform) price. Precommitting to an increasing supply curve is a strategic instrument to reward aggressive bidding and enhance expected revenue. A fixed supply may not be optimal even when accounting for the cost to the seller of issuing a quantity different from her target supply.

Keywords: uniform-price auction; divisible good; strategic role of the seller; endogenous supply; Treasury and IPO auctions. (search for similar items in EconPapers)
JEL-codes: D44 E58 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2002-10-17
New Economics Papers: this item is included in nep-com and nep-mic
Note: Type of Document - Acrobat PDF; prepared on Mac; to print on PostScript; pages: 30 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0210/0210003.pdf (application/pdf)

Related works:
Journal Article: Tilting the supply schedule to enhance competition in uniform-price auctions (2005)
Working Paper: Tilting the Supply Schedule to Enhance Competition in Uniform-Price Auctions (2003)
Working Paper: Tilting the Supply Schedule to Enhance Competition on Uniform-Price Auctions (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpga:0210003

Access Statistics for this paper

More papers in Game Theory and Information from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).