Che, XiaoGang; Lee, Peter; Yang, Yibai - In: Mathematical Social Sciences 66 (2013) 2, pp. 163-168
This paper investigates the effect of resale allowance on entry strategies in a second price auction with two bidders whose entries are sequential and costly. We first characterize the perfect Bayesian equilibrium in cutoff strategies. We then show that there exists a unique threshold such that...