Dynamic Monopolies with Stochastic Demand
نویسنده
چکیده
This paper analyzes Perfect Bayesian Equilibria in dynamic monopolies with stochastic demand. It examines sequential take-it-or-leave-it o®ers and sequential auctions. It is shown that equilibria in the former mechanism trade-o® allocative e±ciency and competing buyers' opportunities to acquire an item to be sold, permitting prices and expected revenue above those of one-shot o®ers and sequential auctions. Hence Coase-type conjectures are invalid and optimal sequential auctions can be dominated. This provides one explanation why some goods are typically sold via deals, while others are sold in auctions. An asymptotic revenue equivalence result is shown to reconcile the two mechanisms as the time horizon of the dynamic game gets large.
منابع مشابه
Competitive Externalities in Dynamic Monopolies with Stochastic Demand
This paper analyzes equilibria in sequential take-it-or-leave-it sales when demand is stochastic. It is shown that equilibria in this sales mechanism, unlike in sequential auctions, trade-off allocative efficiency and competing buyers’ opportunities to acquire an item to be sold, permitting prices and expected revenue above those of one-shot offers. Hence Coase-type conjectures are invalid in t...
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