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How risk sharing may enhance efficiency in English auctions

Hu, Audrey; Offerman, Theo; Zou, Liang - 2014

We investigate the possibility of enhancing efficiency by awarding premiums to a set of highest bidders in an English auction - in a setting that extends Maskin and Riley (1984, Econometrica 52: 1473-1518) in three aspects: (i) the seller can be risk averse, (ii) the bidders can have...

Persistent link: https://www.econbiz.de/10010234599

Does Cost Uncertainty in the Bertrand Model Soften Competition?

Lagerlöf, Johan N. M. - 2014

The answer is no. Although naive intuition may suggest the opposite, uncertainty about costs in the homogeneous-good Bertrand model intensifies competition: it lowers price and raises total surplus (but also makes profits go up). For some economic environments, this is implied by Hansen's (RAND,...

Persistent link: https://www.econbiz.de/10013054742

Contested Places, Utility Pole Spaces : A Competition and Safety Framework for Analyzing Utility Pole Association Rules, Roles, and Risks

Sandoval, Catherine J.K - 2023

As climate change augurs longer wildfire seasons, safe, reliable, and competitive energy and communications markets depend on sound infrastructure and well-calibrated regulation. The humble wooden utility pole, first deployed in America in 1844 to extend telegraph service, forms the twenty-first...

Persistent link: https://www.econbiz.de/10014254996

Dynamic Collusion, Vertical Competition, and Systematic Risk

She, Guoman; Wei, K.C. John; You, Haifeng - 2022

Building on dynamic collusion theories, we predict that firms with less concentrated upstream or downstream industries have lower systematic risk because their supply chain partners tend to compete more aggressively during recessions, absorbing more of the adverse effect of aggregate shocks....

Persistent link: https://www.econbiz.de/10014255362

Oligopoly as a socially embedded dilemma : an experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

dampens cooperation, though only slightly. Surprisingly, externalities are immaterial. If we control for beliefs, they even … we add beliefs as a control variable, we only find that externalities enhance cooperation, even if gains from collusion … expected. -- Oligopoly ; Collusion ; experiment ; Uncertainty ; negative externalities ; prisoner's dilemma …

Persistent link: https://www.econbiz.de/10008822475

A pure variation of risk in first-price auctions

Kirchkamp, Oliver; Reiss, J. Philipp; Sadrieh, Abdolkarim - 2006

We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that decreasing bidders' risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium prediction. This implies that risk affects bidding...

Persistent link: https://www.econbiz.de/10010263870

Auctions under payoff uncertainty : the case with heterogeneous bidder-aversion to downside risk

Hu, Audrey Xianhua; Zou, Liang - 2008

This paper characterizes the optimal first-price auction (FPA) and second-price auction (SPA) for selling rights, contracts, or licenses that involve ensuing payoff uncertainty for the winning bidder. The distribution of the random payoff is common knowledge, except that bidders have private...

Persistent link: https://www.econbiz.de/10011374400

Handicapping under Uncertainty in an All-Pay Auction

Harbaugh, Rick - 2014

A fundamental result of contest theory is that evenly matched contests are fought most intensely, implying that a … "handicapping" is credited with making sports contests more exciting, improving efficiency in internal labor markets, increasing …

Persistent link: https://www.econbiz.de/10013069188

Bidding with Securities under Risk Aversion : The Role of Steepness as Insurance

Fioriti, Andres - 2019

In a security-bid auction, the stochastic revenue of the project being auctioned is used as an asset to securitize the winner's payment to the seller. De Marzo et al. (2005) show that in an environment with risk-neutral seller and bidders, steeper securities increase the seller's expected...

Persistent link: https://www.econbiz.de/10012865568

A Procurement Auction Model Under Supplier Uncertainty

Gurnani, Haresh - 2015

As business-to-business commerce shifts to the Internet, newer suppliers with cheaper but unreliable technologies enter the market place to win orders from firms by beating the price of their perfectly reliable (but expensive) competitors. The dilemma facing purchasing firms is the allocation of...

Persistent link: https://www.econbiz.de/10012707538

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