Logo
Munich Personal RePEc Archive

Strategic Price Discounting and Rationing in Uniform Price Auctions

Bourjade, Sylvain (2003): Strategic Price Discounting and Rationing in Uniform Price Auctions.

[thumbnail of MPRA_paper_7260.pdf]
Preview
PDF
MPRA_paper_7260.pdf

Download (180kB) | Preview

Abstract

Uniform price auctions admit a continuum of collusive seeming equilibria due to bidders' market power. In this paper, I modify the auction rules in allowing the seller to ration strategic bidders in order to ensure small bidders' participation. I show that many of these "bad" equilibria disappear when strategic bidders do not know small bidders' willingness to pay. Moreover, when the seller is unconstrained in the quantity she can allocate to small bidders, the unique equilibrium price is the highest that the seller could get.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.