The Uniform Price Auction with Endogenous Supply

Damianov, D.S.

Abstract

This paper shows that low-price equilibria in the uniform price auction with endogenous supply do not exist if the seller employs the proportional rationing rule and is consistent when selecting among profit-maximizing quantities. In a (consistent) subgame perfect equilibrium the Walrasian quantities are traded at the Walrasian price.

Citation

Damianov, D. (2005). The Uniform Price Auction with Endogenous Supply. Economics Letters, 88(2), 152-158. https://doi.org/10.1016/j.econlet.2005.02.004

• Journal Article Type: Article
• Publication Date: 2005-08
• Deposit Date: Aug 27, 2013
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Electronic ISSN: 1873-7374
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 88
• Issue: 2
• Pages: 152-158
• DOI: https://doi.org/10.1016/j.econlet.2005.02.004
• Keywords: Endogenous supply; Proportional rationing; Consistency
• Public URL: https://durham-repository.worktribe.com/output/1451455