zbMATH — the first resource for mathematics

Auctions with private uncertainty and resale opportunities. (English) Zbl 1054.91029
The paper considers the case of auctions followed by an opportunity for resale where the bidder valuations are endogenously determined, reflecting anticipated profit from buying/selling in the resale market. To this end, it considers a two-stage model in which an auction in the first stage is followed by a resale auction, held by the first-stage winner. It also examines two cases, the case where resale takes place under complete information, and the case where the players have asymmetric information in the resale market.

91B26 Auctions, bargaining, bidding and selling, and other market models
Full Text: DOI
[1] Ashenfelter, O.; Genesove, D., Testing for price anomalies in real-estate auctions, Amer. econom. rev., 82, 501-505, (1992)
[2] L. Ausubel, P. C. Cramton, The optimality of being efficient, Working paper, University of Maryland, 1999.
[3] Bikhchandani, S.; Haile, P.; Riley, J.G., Symmetric separating equilibria in English auctions, Games econom. behav., 38, 19-27, (2002) · Zbl 1013.91043
[4] Bikhchandani, S.; Huang, C., Auctions with resale marketsan exploratory model of treasury bill markets, Rev. finan. stud., 3, 311-339, (1989)
[5] Chakravorti, B.; E. Dansby, R.; W. Sharkey, W.; Spiegel, Y.; Wilkie, S., Auctioning the airwavesthe contest for broadband PCS spectrum, J. econom. management strategy, 4, 345-373, (1995)
[6] C. Cramton, P., Money out of thin airthe nationwide narrowband PCS auction, J. econom. management strategy, 4, 267-343, (1995)
[7] J. Fedderson, T.; Pesendorfer, W., The swing Voter’s curse, Amer. econom. rev., 86, 408-424, (1996)
[8] Gale, I.; B. Hausch, D.; Stegeman, M., Sequential procurement with subcontracting, Internat. econom. rev., 41, 220-989, (2000)
[9] Genesove, D., Adverse selection in the wholesale used car market, J. polit. economy, 101, 644-665, (1993)
[10] J. K. Goeree, Bidding for the future, signaling in auctions with an aftermarket, Working paper, University of Virginia, 2001. · Zbl 1032.91057
[11] Gupta, M.; Lebrun, B., First price auctions with resale, Econom. lett., 64, 181-185, (1999) · Zbl 0935.91013
[12] P. A. Haile, Auctions with resale, Working paper, University of Wisconsin, 1996.
[13] P. A. Haile, Auctions with private uncertainty and resale opportunities, SSRI Working Paper 9801R, University of Wisconsin-Madison, 1999.
[14] A. Haile, P., Partial pooling at the reserve price in auctions with resale opportunities, Games econom. behav., 33, 231-248, (2000) · Zbl 0966.91036
[15] A. Haile, P., Auctions with resale marketsan application to U.S. forest service timber sales, Amer. econom. rev., 91, 399-427, (2001)
[16] J. Hausman, D. Wittman, Analysis and recommendations for FCC PCS spectrum auctions, Attachment to Comments of Pactel, FCC PP Docket, 1993, pp. 93-253.
[17] I. Kamien, M.; Li, L.; Samet, D., Bertrand competition with subcontracting, Rand J. econom., 20, 553-567, (1989)
[18] K. Krishna, L. H. Tan, Transferable licenses vs. nontransferable licenses: what is the difference?, Working paper, Pennsylvania State University, 1998.
[19] Maskin, E.; Tirole, J., The principle-agent model with an informed principlethe case of private values, Econometrica, 58, 379-409, (1990) · Zbl 0728.90107
[20] P. McAfee, R.; McMillan, J., Auctions and bidding, J. econom. lit., 25, 669-738, (1987)
[21] P. McAfee, R.; McMillan, J., Auctions with a stochastic number of bidders, J. econom. theory, 43, 1-19, (1987) · Zbl 0624.90003
[22] R. P. McAfee, D. C. Quan, D. R. Vincent, How to set minimum acceptable bids, with and application to real estate auctions, J. Industrial Econom., forthcoming.
[23] McMillan, J., Selling spectrum rights, J. econom. perspect., 8, 145-162, (1994)
[24] R. Milgrom, P., Good news and bad newsrepresentation theorems and applications, RAND J. econom., 12, 380-391, (1981)
[25] R. Milgrom, P., Rational expectations, information acquisition, and competitive bidding, Econometrica, 49, 921-943, (1981) · Zbl 0461.90007
[26] R. Milgrom, P., The economics of competitive bidding: a selective survey, (), 261-289
[27] R. Milgrom, P., Auction theory, (), 1-32 · Zbl 0800.90338
[28] R. Milgrom, P.; J. Weber, R., A theory of auctions and competitive bidding, Econometrica, 50, 1089-1122, (1982) · Zbl 0487.90017
[29] B. Myerson, R., Optimal auction design, Math. oper. res., 6, 58-73, (1981) · Zbl 0496.90099
[30] Pesendorfer, W.; M. Swinkels, J., The Loser’s curse and information aggregation in common value auctions, Econometrica, 65, 1247-1282, (1997) · Zbl 0887.90052
[31] G. Riley, J.; F. Samuelson, W., Optimal auctions, Amer. econom. rev., 71, 381-392, (1981)
[32] W. Rosenthal, R.; Wang, R., Simultaneous auctions with synergies and common values, Games econom. behav., 17, 32-55, (1996) · Zbl 0886.90056
[33] H. Rothkopf, M.; M. Harstad, R., Modeling competitive biddinga critical essay, Management sci., 40, 364-384, (1994)
[34] Shaked, M.; G. Shanthikumar, J., Stochastic orders and their applications, (1994), Academic Press San Diego · Zbl 0806.62009
[35] Wilson, R., Sequential equilibria of asymmetric ascending auctionsthe case of log-normal distributions, Econom. theory, 12, 433-440, (1998) · Zbl 0906.90047
[36] Zheng, C., An optimal auction with resale, Econometrica, 70, 2197-2224, (2002) · Zbl 1141.91412
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.