Auctions with entry and resale

We study how resale affects auctions with costly entry in a model where bidders possess twodimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our analysis suggests that the opportunity of resale affects both entry and bidding, and, in particular, it induces motivation for both speculative entry and resale hunting abstentions. Our numerical results suggest that while the entry probability and efficiency are always higher when resale is allowed, the effect on the seller’s expected revenue is ambiguous.