Che, Xiaogang (2009): Internet auctions with a temporary buyout option.
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In an Internet auction, bidders sequentially decide whether or not to enter, and each bidder has to pay a participation cost. In this paper we model an Internet auction with a temporary buyout option. Our main result shows that under certain condition, offering a temporary buyout price would encourage entry of risk neutral bidders, and hence enable the seller to increase expected payoff.
|Item Type:||MPRA Paper|
|Original Title:||Internet auctions with a temporary buyout option|
|Keywords:||Internet auction, temporary buyout option|
|Subjects:||D - Microeconomics > D4 - Market Structure, Pricing, and Design > D44 - Auctions|
|Depositing User:||Xiaogang Che|
|Date Deposited:||08. Nov 2009 06:27|
|Last Modified:||15. Mar 2015 14:52|
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