search query: @author Bulow, J. / total: 4
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| Author: | Bulow, J. Klemperer, P. |
| Title: | Prices and the winner's curse |
| Journal: | RAND Journal of Economics
2002 : SPRING, VOL. 33:1, p. 1-21 |
| Index terms: | PRICES PRICE THEORY BUYING SELLING COMPARATIVE ADVANTAGE |
| Language: | eng |
| Abstract: | The authors usually assume that increases in supply, allocation by rationing, and exclusion of potential buyers reduce prices. But all these activities raise the expected price in an important set of cases when common-value assets are sold. Furthermore, when the authors make the assumptions needed to rule out these "anomalies" for symmetric buyers, small asymmetries among the buyers necessarily cause the anomalies to reappear. The authors' results help explain rationing in initial public offerings and outcomes of spectrum auctions. The authors illustrate the results in the "Wallet Game" and in another new game the authors introduce, the "Maximum Game." |
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