Ivanova-Stenzel, Radosveta; Kroger, Sabine - Centre Interuniversitaire sur le Risque, les Politiques … - 2005
This paper analyzes the trade of an indivisible good within a two-stage mechanism, where a seller first negotiates with one potential buyer about the price of the good. If the negotiation fails to produce a sale, a second-price sealed-bid auction with an additional buyer is conducted. The...