Showing 1 - 10 of 5,735
We demonstrate how suppliers can take strategic speculative positions in derivatives markets to soften competition in the spot market. In our game, suppliers first choose a portfolio of call options and then compete with supply functions. In equilibrium firms sell forward contracts and buy call...
Persistent link: https://www.econbiz.de/10014181627
Unique-lowest sealed-bid auctions are auctions in which participation is endogenous and the winning bid is the lowest bid among all unique bids. Such auctions admit very many Nash equilibria (NEs) in pure and mixed strategies. The two-bidders' auction is similar to the Hawk-Dove game, which...
Persistent link: https://www.econbiz.de/10014047495
The appearance of a Brownian term in the price dynamics on a stock market was interpreted in [De Meyer, Moussa-Saley (2003)] as a consequence of the informational asymmetries between agents. To take benefit of their private information without revealing it to fast, the informed agents have to...
Persistent link: https://www.econbiz.de/10014052529
We survey the recent literature on designing auctions and mechanisms for dynamic settings. Two settings are considered: those with a dynamic population of agents whose private information remains fixed throughout time; and those with a fixed population of agents whose private information changes...
Persistent link: https://www.econbiz.de/10014195204
A seller has an uncertain number of perishable goods to sell in each period. Privately informed buyers arrive stochastically to the market. Buyers are risk neutral, patient, and have persistent private values for consuming a single unit. We show that the seller can implement the efficient...
Persistent link: https://www.econbiz.de/10014213179
We examine a model in which buyers with single-unit demand are faced with an infinite sequence of auctions. In each period, a new buyer probabilistically arrives to the market, and is endowed with a constant private value. We demonstrate by way of a simple example the inefficiency of the...
Persistent link: https://www.econbiz.de/10014220435
A dynamic mechanism design problem is considered. We suppose dynamic population and identical perishable goods, such as time slots of a central facility and hotel rooms. We consider a situation where each agent needs to keep an object for more than one period to make profits. The seller makes...
Persistent link: https://www.econbiz.de/10014163776
We demonstrate how suppliers can take strategic speculative positions in derivatives markets to soften competition in the spot market. In our game, suppliers first choose a portfolio of call options and then compete with supply functions. In equilibrium firms sell forward contracts and buy call...
Persistent link: https://www.econbiz.de/10014163880
This article characterizes China's between-city skyscraper contest with an infinitely-repeated game. The mixed strategy equilibrium of this dynamic game-theoretic model implies that a Chinese city would be more inclined to build a taller skyscraper if the height of its current tallest building...
Persistent link: https://www.econbiz.de/10014078995
We propose a theoretical model of a round-robin tournament with limited resources motivated by the fact that in a real-world round-robin sport tournament participating teams are sometimes forced to distribute their effort over an extended period. We assume that the participating teams have a...
Persistent link: https://www.econbiz.de/10012950230