Equivalence of Auctions and Posted Prices

K.K. Kultti

    Research output: Working paperDiscussion paperOther research output

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    Abstract

    We determine the equilibrium in two transaction mechanisms: auctions and posted prices. Agents choose whether to participate in markets where trades are consummated by auctions or in markets where sellers post prices. We show that the selling mechanisms are practically equivalent. Previous studies have shown that auction markets emerge as a unique evolutionary stable equilibrium when compared to bargaining markets. Posted price market dominate bargaining markets similarly.
    Original languageEnglish
    Place of PublicationTilburg
    PublisherCentER, Center for Economic Research
    Number of pages10
    Volume1997-57
    Publication statusPublished - 1997

    Publication series

    NameCentER Discussion Paper
    Volume1997-57

    Fingerprint

    Equivalence
    Auctions
    Posted prices
    Auction market
    Seller
    Evolutionary

    Keywords

    • Auctions
    • posted prices
    • random matching.

    Cite this

    Kultti, K. K. (1997). Equivalence of Auctions and Posted Prices. (CentER Discussion Paper; Vol. 1997-57). Tilburg: CentER, Center for Economic Research.
    Kultti, K.K. / Equivalence of Auctions and Posted Prices. Tilburg : CentER, Center for Economic Research, 1997. (CentER Discussion Paper).
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    Kultti, KK 1997 'Equivalence of Auctions and Posted Prices' CentER Discussion Paper, vol. 1997-57, CentER, Center for Economic Research, Tilburg.

    Equivalence of Auctions and Posted Prices. / Kultti, K.K.

    Tilburg : CentER, Center for Economic Research, 1997. (CentER Discussion Paper; Vol. 1997-57).

    Research output: Working paperDiscussion paperOther research output

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    Kultti KK. Equivalence of Auctions and Posted Prices. Tilburg: CentER, Center for Economic Research. 1997. (CentER Discussion Paper).