Speculation in First-Price Auctions with Resale
نویسنده
چکیده
We analyze first-price auctions with two asymmetric bidders, where the winner can offer the good for resale to the loser. One bidder has a private value for the good, the other bidder—the speculator—has zero value. We show that, independently of the resale market rules, the speculator’s expected profit equals zero. Nevertheless, the opportunity for resale can create a role for an active speculator, destroy the efficiency of the auction, and increase the initial seller’s expected revenue.
منابع مشابه
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