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Internet Auctions with a Temporary Buyout Option

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  • Che, XiaoGang

Abstract

We model an Internet auction with a temporary buyout option. Our main result shows that under certain parameter values, there exist two types of equilibria where offering a temporary buyout option with an appropriate reserve price enables the seller to increase expected revenue.

Suggested Citation

  • Che, XiaoGang, 2010. "Internet Auctions with a Temporary Buyout Option," Working Papers 2010-07, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/7110
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    References listed on IDEAS

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    1. Jeremy Bulow & Paul Klemperer, 2009. "Why Do Sellers (Usually) Prefer Auctions?," American Economic Review, American Economic Association, vol. 99(4), pages 1544-75, September.
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    More about this item

    Keywords

    Internet auctions; temporary buyout option; entry cost;
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