Endogenous Transactions Costs in Multi-Seller Model
We examine the problem of a buyer who wishes to purchase and combine <i>n</i> objects owned by <i>n</i> individual owners to realize a higher value. The owners are able to delay their entry into the sale process: They can either sell now or sell later. Among other assumptions, the simple assumption of competition - that the presence of more owners at point of sale reduces their surplus - and discounting lead to interesting results: There is costly delay in equilibrium. Moreover, with...[Show more]
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