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Reserve prices are used by sellers to modify the allocation induced by standard auctions. The existing literature has … may discourage entry. The reduction in the number of bidders caused by the reserve price in this situation is detrimental … may lead to more entry and raise the efficiency. Applications characterized by the presence of an incumbent who is better …
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We investigate equilibrium bidding in first-price auctions with asymmetric reserve prices. For example, the auctioneer …
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We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform...
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