Adjustable Supply in Uniform-Price Auctions: The Value of Non-Commitment
28 Pages Posted: 31 Jan 2005
Date Written: March 2005
In uniform-price auctions, the seller sometimes retains flexibility to adjust the total quantity sold after receiving the bids, or simply lacks the ability to commit to a schedule of reserve prices (or supply curve). In this paper, I show that the seller raises more revenue in equilibrium given such adjustable supply than by committing to any supply curve.
Keywords: uniform-price auctions
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