Title: Divisible Good Auctions with Downstream Competition
with Ethem Akyol
Abstract: We study the effects of downstream competition when firms are competing in different divisible good auctions. The quantity a firm wins in an auction is the maximum it can sell in the downstream price competition. We find that the firms bid less aggressively than they would when facing a competitive downstream market, and the firms reduce their bid less in a pay-as-bid auction than in a uniform-price auction. As a result, a pay-as-bid auction generates strictly higher expected revenue than a uniform-price auction does.
Details
Start Date
End Date
Venue
Fred Gruen Economics Seminar Room (H.W. Arndt Bldg 25A)
Presenter(s)
Dr. Jun Xiao (University of Melbourne)