Auctions versus Posted-Price Selling.
Two popular selling methods--posted-price selling and auctions--are compared here in an independent private-values model. Without auctioning costs, auctioning is always optimal. When auctioning is costly, auctions are still preferable if the marginal-revenue curve is sufficiently steep. The global steepness of the marginal-revenue curve is found to coincide with the dispersion around the mean for a number of standard distributions. Finally, the prices of the monopoly seller and of the social optimum are compared. Copyright 1993 by American Economic Association.
Year of publication: |
1993
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Authors: | Wang, Ruqu |
Published in: |
American Economic Review. - American Economic Association - AEA. - Vol. 83.1993, 4, p. 838-51
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Publisher: |
American Economic Association - AEA |
Saved in:
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