Abstract

This paper analyzes equilibria in sequential take-it-or-leave-it sales when demand is stochastic. It is shown that equilibria in this sales mechanism, unlike in sequential auctions, trade-off allocative efficiency and competing buyers' opportunities to acquire an item to be sold, permitting prices and expected revenue above those of one-shot offers. Hence Coase-type conjectures are invalid in this setting.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call