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Durham University

Research & business

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Publication details

Li, D.Z. (2017). Ranking Equilibrium Competition in Auctions with Participation Costs. Economics Letters 153: 47-50.

Author(s) from Durham

Abstract

This paper studies the degrees of equilibrium competition in three common forms of auctions with costly participation, and shows that, when bidders’ valuation distribution is concave, there is a simple condition to rank the equilibrium competition of those auctions. It also investigates how the results are related to stochastic ordering of bidders’ valuation distributions, and provides some illustrative examples.