Synergies and price trends in sequential auctions
In this paper we consider sequential second-price auctions where an individual's value for a bundle of objects is either greater than the sum of the values for the objects separately (positive synergy) or less than the sum (negative synergy). We show that the existence of positive synergies implies declining expected prices. When synergies are negative, expected prices are increasing. There are several corollaries. First, the seller is indifferent between selling the objects simultaneously as a...[Show more]
|Collections||ANU Research Publications|
|Source:||Review of Economic Design|
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.