Detail Bid Costs and Endogenous Bid Caps   Oleh:  Moldovanu, Benny ; Sela, Aner ; Gavious, Arieh Jenis: Article from Bulletin/Magazine Dalam koleksi: The Rand Journal of Economics vol. 33 no. 4 (2002), page 709-722. Topik: costs; bid costs; endogenous; bid caps Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: RR10.7 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel We study contests where several privately informed agents bid for a prize. All bidders bear a cost of bidding that is an increasing function of their bids, and, moreover, bids may be capped. We show that regardless of the number of bidders, if bidders have linear or concave cost functions, then setting a bid cap is not profitable for a designer who wishes to maximize the average bid. On the other hand, if agents have convex cost functions (i. e., an increasing marginal cost), then effectively capping the bids is profitable for a designer facing a sufficiently large number of bidders. Furthermore, bid caps are effective for any number of bidders if the cost functions' degree of the convexity is large enough. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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