Equilibrium price paths in sequential auctions with stochastic supply

Authors
Jeitschko, TD
Citation
Td. Jeitschko, Equilibrium price paths in sequential auctions with stochastic supply, ECON LETT, 64(1), 1999, pp. 67-72
Citations number
11
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
64
Issue
1
Year of publication
1999
Pages
67 - 72
Database
ISI
SICI code
0165-1765(199907)64:1<67:EPPISA>2.0.ZU;2-2
Abstract
In many sequential auctions supply is unknown ex ante. Consequently, price formation depends on information regarding supply: uncertain supply reduces the 'option value' and yields declining prices. However, prices increase i f it becomes known that supply falls short of expectations. (C) 1999 Elsevi er Science S.A. All rights reserved. JEL classification: D44.